{"id":61385,"date":"2019-10-31T05:00:44","date_gmt":"2019-10-31T09:00:44","guid":{"rendered":"https:\/\/currencylive.com\/?p=61385"},"modified":"2019-10-31T11:07:54","modified_gmt":"2019-10-31T15:07:54","slug":"101369-eur-usd-euro-extends-gains-after-feds-rate-cut","status":"publish","type":"post","link":"https:\/\/currencylive.com\/news\/101369-eur-usd-euro-extends-gains-after-feds-rate-cut\/","title":{"rendered":"EUR\/USD: Euro Extends Gains After Fed\u2019s Rate Cut"},"content":{"rendered":"<p>As expected, the Federal Reserve cut interest rates on Wednesday. The euro US dollar exchange rate rallied for a third straight session. The pair closed 0.3% higher at US$1.1153, its highest closing level in 2 weeks. The euro is extending those gains in early trade on Thursday.<\/p>\n<p>The euro was in favour in the previous session, despite a mixed batch of data from the bloc. German inflation fuelled concerns that Europe\u2019s largest economy was slipping into recession. German inflation, as measured by the consumer price index (CPI) remained low in October, with prices increasing just 0.9% compared to a year earlier. This is significantly below the 2% target. German unemployment also continued to rise. The figures highlighted the struggles that the German economy is still facing, despite the European Central Bank taking action by easing monetary policy.<\/p>\n<p>In September the ECB cut interest rates and restarted its bond buying programme. Even so, inflation in Germany has failed to pick up. The German government has also been reluctant to increase fiscal spending. Christine Lagarde will take over as ECB President on Friday and is part of a growing choir of voices putting pressure on eurozone governments to increase spending in order to shore up their economy.<\/p>\n<p>Today investors will remain focused on inflation. Eurozone inflation figures are expected to show that prices in the bloc increased a lacklustre 0.7% in October compared to a year earlier. Such weak inflation figures could unnerve investors sending the euro lower.<\/p>\n<h3><strong>Dollar Drops On Dovish Fed Comment<\/strong><\/h3>\n<p>The US dollar dropped sharply lower in the previous session. The Federal Reserve cut interest rates from 1.75% to 1.5% as expected. This was the third rate cut this year by the US central bank since July. The Fed also indicated that has finished cutting interest rates for the time being, waiting for economic data to paint a clearer picture.<\/p>\n<p>Given that the rate cut was expected by market participants, this isn\u2019t what sent the dollar lower. The dollar lost ground after Fed Chair Jerome Powell said that the central bank would need to see a strong and persistent uplift in inflation before it would consider hiking interest rates. So, whilst no more rate cuts are expected for the moment, it could still be a long time until there is another rate hike. This weighed on demand for the dollar and continues to in early trade on Thursday.<\/p>\n<table style=\"height: 132px;\" width=\"1043\">\n<tbody>\n<tr>\n<td><a href=\"https:\/\/transferwise.com\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-61179 aligncenter\" style=\"padding-top: 15px;\" src=\"https:\/\/currencylive.com\/wp-content\/uploads\/2019\/10\/transferwise-keep_your_money-generic-655x110.png\" alt=\"\" width=\"655\" height=\"110\" srcset=\"https:\/\/currencylive.com\/news\/wp-content\/uploads\/2019\/10\/transferwise-keep_your_money-generic-655x110.png 655w, https:\/\/currencylive.com\/news\/wp-content\/uploads\/2019\/10\/transferwise-keep_your_money-generic-655x110-300x50.png 300w\" sizes=\"auto, (max-width: 655px) 100vw, 655px\" \/><\/a><\/p>\n<h6 style=\"text-align: center;\">Advertisment<\/h6>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table width=\"602\">\n<tbody>\n<tr>\n<td><strong>What do these figures mean?<\/strong><\/td>\n<\/tr>\n<tr>\n<td>When measuring the value of a pair of currencies, one set equals 1 unit and the other shows the current equivalent. As the market moves, the amount will vary from minute to minute.<\/p>\n<p>For example, it could be written:<\/p>\n<p><em>1 EUR = 1.12829 USD<\/em><\/p>\n<p>Here, \u20ac1 is equivalent to approximately $1.13. This specifically measures the euro\u2019s worth against the dollar. If the U.S. dollar amount increases in this pairing, it\u2019s positive for the euro.<\/p>\n<p>Or, if you were looking at it the other way around:<\/p>\n<p><em>1 USD = 0.88789 EUR<\/em><\/p>\n<p>In this example, $1 is equivalent to approximately \u20ac0.89. This measures the U.S. dollar\u2019s worth versus the euro. If the euro number gets larger, it\u2019s good news for the dollar.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<hr \/>\n<h6><em>Currencylive.com is a news site only and not a currency trading platform.<\/em><\/h6>\n<h6><em>Currencylive.com is a site operated by TransferWise Inc. (&#8220;We&#8221;, &#8220;Us&#8221;), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on currencylive.com do not represent our views.<\/em><\/h6>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As expected, the Federal Reserve cut interest rates on Wednesday. The euro US dollar exchange rate rallied for a third straight session. The pair closed 0.3% higher at US$1.1153, its highest closing level in 2 weeks. The euro is extending those gains in early trade on Thursday. The euro was in favour in the previous [&hellip;]<\/p>\n","protected":false},"author":163946597,"featured_media":5082,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1380,1381],"tags":[1481,1413,1395,1393,1408,1438,1387,1433,1397,1398],"class_list":{"0":"post-61385","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-eur","8":"category-usd","9":"tag-christine-lagarde","10":"tag-ecb","11":"tag-eur","12":"tag-euro","13":"tag-fed","14":"tag-federal-reserve","15":"tag-inflation","16":"tag-rate-cut","17":"tag-us-dollar","18":"tag-usd"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>EUR\/USD: Euro Extends Gains After Fed\u2019s Rate Cut - Currency Live<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/currencylive.com\/news\/101369-eur-usd-euro-extends-gains-after-feds-rate-cut\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Fiona Cincotta\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101369-eur-usd-euro-extends-gains-after-feds-rate-cut\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101369-eur-usd-euro-extends-gains-after-feds-rate-cut\\\/\"},\"author\":{\"name\":\"Fiona Cincotta\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/8ef0fafb6c93f1204150bb907b42cfec\"},\"headline\":\"EUR\\\/USD: Euro Extends Gains After Fed\u2019s Rate Cut\",\"datePublished\":\"2019-10-31T09:00:44+00:00\",\"dateModified\":\"2019-10-31T15:07:54+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101369-eur-usd-euro-extends-gains-after-feds-rate-cut\\\/\"},\"wordCount\":773,\"image\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101369-eur-usd-euro-extends-gains-after-feds-rate-cut\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100751-pound-falls-brexit-fear.jpg\",\"keywords\":[\"Christine Lagarde\",\"ecb\",\"eur\",\"euro\",\"fed\",\"federal reserve\",\"Inflation\",\"rate cut\",\"us dollar\",\"usd\"],\"articleSection\":[\"EUR\",\"USD\"],\"inLanguage\":\"en-US\",\"copyrightYear\":\"2019\",\"copyrightHolder\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101369-eur-usd-euro-extends-gains-after-feds-rate-cut\\\/\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101369-eur-usd-euro-extends-gains-after-feds-rate-cut\\\/\",\"name\":\"EUR\\\/USD: Euro Extends Gains After Fed\u2019s Rate Cut - 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