That is why US interest rate concerns are only a brief burden on the euro

Following the release of consumer prices, the common currency initially fell to a daily low of $ 1.2276. But then she got a strong upwind, which drove her even over the mark of 1.24 dollars. In New York last $ 1,2441 were paid. The European Central Bank (ECB) had previously set the reference rate at 1.2348 (Tuesday: 1.2333) dollars. The dollar cost 0.8099 (0.8108) euros.

In January, US consumer prices rose faster than expected. As in the previous month, inflation was 2.1 percent, while many experts had expected inflation to slow. The foreign exchange market reacted strongly at first: Market observers were confirmed that the Fed could step on the monetary brake four times this year and raise interest rates. This had initially boosted the dollar and weighed on the euro in return.

Commerzbank economist Christoph Balz countered that many American companies changed their prices at the beginning of the year, which could overstate the trend. He also emphasized that little has been done in the interest-rate-related wage increase. “We therefore expect the trend to be a slow increase in inflation rather than a boost,” says Balz.
At the second glance, market analyst David Madden from CMC Markets also noted that inflation in January stagnated only at the December level. Together with weak retail data, the US data was overall not as convincing as initially thought.

However, new economic data from the eurozone, which point to a further robust upturn, failed to significantly boost the euro exchange rate. The price movements on the foreign exchange market, according to market observers, mainly from the US dollar, not from the euro.