EUR/USD Near Nine Month Low at 1.3350

The dollar strengthened to an almost nine-month high against the euro after European Central Bank President Mario Draghi signaled monetary policy will diverge from the U.S. for an extended period of time.

The greenback rose against all but one of its 16 main peers as unemployment claims dropped, pushing the average over the past month to an eight-year low. Russia’s ruble declined to a three-month low as political tension in Ukraine deepened. Australia’s dollar fell by the most in a month against its U.S. counterpart as traders revived bets the nation’s central bank will cut interest rates after unemployment jumped, while Israel’s shekel slumped after the central bank intervened.

“There’s a realization that we’re in a period of euro weakness now that fundamentals are coming in play,” Alan Robinson, global portfolio adviser at Royal Bank of Canada’s RBC Wealth Management unit in Seattle, said in a phone interview. “If anything has changed in the past few months, it’s that we have the clearest sense that regional economies are diverging more than we expected.”

Bloomberg

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.