Euro edges lower as oil prices rise
SPY•The euro fell 0.05% to $1.1216 after a three-day rally, while oil prices rose 2%. The yen gained after Bank of Japan minutes reinforced expectations of further rate hikes, and sterling was little changed after the Bank of England raised rates.
1. Euro and oil move
The euro eased 0.05% to $1.1216 on Thursday after a three-day rally, while oil prices rose 2% following a three-day decline. Analysts said the euro could face renewed downward pressure as investors temper expectations for further European Central Bank monetary tightening and concerns persist about France’s fiscal trajectory.
2. Central bank outlook
Sterling was little changed against the euro and dollar after the Bank of England raised interest rates, a move investors did not view as the start of an aggressive tightening cycle. The yen gained 0.14% to 158.18 per dollar after minutes from the Bank of Japan’s September meeting reinforced bets on further rate hikes; markets widely expect the next increase in December.
