The Euro continues to move in positive territory thanks to the European interest rate

The euro continues to move in the positive zone thanks to European interest, as the euro rose in the European market on Monday against a basket of global currencies, extending its gains for the second day in a row against the US dollar, to continue moving in the positive zone, thanks to speculation about European interest, where expectations are strong about the existence of increases additional meetings at the European Central Bank during June and July. The greenback continues after the Federal Reserve hinted at a pause in monetary tightening and the end of a lifting cycle

Current interest rates, and investors are awaiting later today data on the levels of bank lending in the United States, in addition to following developments on the debt ceiling crisis and the complex negotiation between lawmakers within congress. The euro rose against the dollar by 0.25% to $1.1050, from the opening price of trading at $1.1024, and recorded the lowest level today at $1.1014. On Thursday, the euro rose 0.1% against the dollar, its third gain in the last four days, due to negative banking and financial pressures in the United States.

In line with expectations, the European Central Bank raised interest rates last week by 25 basis points to a range of 3.75%, the highest level since 2008, the time of the outbreak of the global financial crisis, and confirmed that the rate decision during the upcoming meetings will depend on economic data. European Central Bank President Christine Lagarde said, “The European Central Bank’s decision came unanimously with most members of the monetary policy-making committee, and the atmosphere of the meeting was mostly determined to reduce inflation. Lagarde explained that the appropriate neutral level of monetary policy at the European Central Bank is still not clear yet. It will be determined after it is reached, and I confirmed that the current levels of interest are not sufficiently neutral.

Despite the bank’s reduction in the pace of raising interest rates from 50 basis points to 25 basis points, as an indicator of the approaching peak. Monetary tightening and a neutral interest rate, however, the market is still pricing in additional increases in European interest rates during June and July. Deutsche Bank, “Germany’s largest bank,” said we reserve our view for the final interest rate in the eurozone at 4.25%, with increases of 25 basis points in June and July. The bank attributed that view to upside risks in Europe, given the stable core inflation and labor market dynamics

The dollar index fell on Monday by 0.2%, to extend its losses for the second consecutive session, reflecting the continued decline in US currency levels against a basket of major and minor currencies. The currency continues to suffer from last week’s Federal Reserve hinting at a pause in monetary tightening and ending the cycle of raising US interest rates, but indicated that this decision will depend on economic data. The US labor market data, released on Friday, came in better than expected in April, which dampened expectations.

Early cuts in interest rates from the Federal Reserve are likely, with the market inclined to keep the Federal Reserve holding rates steady at the current range for as long as possible this year. Later in the day, investors are awaiting bank lending data in the United States, to gauge the tightening of the environment

credit in the country and the extent of risks facing local banks in light of the accelerating pace of failure of these banks during the recent period. Investors will also be watching for headlines from the US Congress, as lawmakers try to negotiate a deal The looming impasse over the US debt ceiling, especially after Treasury Secretary Janet Yellen warned that the federal government may not be able to pay the debt by the first of next June.