The euro hit its highest level in 10 months on Thursday. The currency traded Thursday morning above 1.10 USD after Federal Reserve chairman Jerome Powell stated Wednesday night that price increases in the United States are slowing. This supported the market’s assessment that the end of the series of interest rate hikes is near and cuts could follow later this year. However, the euro decreased to USD 1,09 after the ECB meeting.
The European Central Bank is not done raising interest rates for now. After the 50 bps increase on Thursday, the monetary authority intends to take such a step in March as well. After that, the central bank will reassess what further steps need to be taken to bring the inflation back to the 2% target.
The filing of new claims for unemployment benefits dropped to a nine-month low last week as the labor market remains resilient despite higher borrowing costs and mounting fears of a recession this year. The surprise decline in weekly jobless claims reported by the US Labor Department on Thursday raised cautious optimism that the economy could avoid a recession.
The 6M Euribor increased with 2 basis points to 3.01% compared to previous business day. The 10Y Swap decreased with 20 basis points to 2.65% compared to previous business day.
In the attachment, today’s market data on money and capital market rates as well as other rates are presented.
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