13 Jan Euro price rises slightly – end of ‘shutdown’ does not support dollar
The euro exchange rate did not move very much in US currency trading on Monday. Lastly, it cost $ 1,2257, slightly more than in early European trading. The expected completion of the US government’s shutdown could not support the dollar. The European Central Bank (ECB) had set the reference rate at 1.2239 (Friday: 1.2255) dollars. The dollar had thus cost 0.8171 (0.8160) euros.
Slight support received the euro course for the start of the week from Germany. The SPD party congress on Sunday had given the green light to start coalition negotiations with the Union parties. This is an important hurdle on the way to forming a government in the largest economy in the Eurozone. This created optimism in the markets, even though both sides are preparing for difficult negotiations. The US Senate paved the way for a vote on a transitional budget that would end the government’s compulsory stalemate. 81 senators voted to end the debate on the bill. 18 voted against it. However, the dollar did not benefit from that. Economists consider the economic impact of the “Government Shutdown” to be moderate anyway. At the start of the week, the South African Rand was given tailwind. To the American dollar, it rose to its highest level since May 2015. Observers referred to a decision of the political leadership of the governing party ANC of the weekend. According to the controversial President of South Africa, Jacob Zuma, resign. However, the call does not provide for a deadline. Zuma’s government had lost a lot of confidence in the financial markets in the face of ever new corruption scandals, thereby putting the South African currency under pressure.