Economy: Forex: the euro extends its gains

Frankfurt The EUR received a tailwind from the possibility of the European Central Bank raising interest rates further. German Central Bank President Joachim Nagel called on Sunday not to be deterred by the bleak economic outlook in the fight against inflation. With stable prices most important for growth, the eurozone should withstand a drought if necessary, according to a member of the European Central Bank’s governing body. On the other hand, investors are betting that lower inflation in the US could prompt the US Federal Reserve to take less restrictive increases in interest rates. US consumer prices for August will be released on Tuesday.

The Euro has previously benefited from the tight monetary policy of the European Central Bank. Last week, monetary regulators sharply raised key interest rates by 0.75 percentage points in order to stem extremely high inflation. The ECB thus follows other large central banks such as the US Federal Reserve or the Bank of England, which raised interest rates much earlier than the ECB.

At the start of the week, there were only a few important economic data on the agenda.