NEW YORK (dpa-AFX) – The Euro edged higher during US trading on Friday. The single currency was last changing hands at 1.1781 US Dollars. Earlier, the European Central Bank (ECB) had set the reference rate at 1.1761 Dollars, compared to 1.1770 on Thursday, resulting in a Dollar value of 0.8502 Euros (previously 0.8496).
Heightened tensions in the Middle East have had a limited impact on currency markets so far. Despite the recent escalation in the region, the rise in crude prices remained contained, and the Euro faced no significant downward pressure.
The US military reported that it has once again targeted and disabled unladen oil tankers sailing under the Iranian flag. According to the US Central Command (Centcom) on the X platform, two such vessels had attempted to dock at an Iranian port in the Gulf of Oman. Furthermore, following Iranian attacks on three US destroyers in the Strait of Hormuz, the US military launched retaliatory strikes against targets within the Islamic Republic.
A slightly better-than-expected US jobs report provided little support for the Greenback. While non-farm payrolls grew more robustly than anticipated in April, hourly wage growth fell slightly short of forecasts, and the unemployment rate remained at a low level.
Commerzbank analyst Christoph Balz does not expect the Federal Reserve to cut interest rates anytime soon following the report. He suggests that Fed members likely feel vindicated in their majority view that the labor market is currently the lesser concern. ‘In contrast, the Fed has been missing its inflation target for five years, and rising energy prices are currently fueling a further inflationary surge,’ Balz noted. ‘Consequently, a rate cut is not expected until towards the end of the year, despite repeated demands from President Trump.’/edh/jsl/he
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