The single European currency euro (EUR) during the European evening of Wednesday and the subsequent night of Thursday, August 17, 2023, as part of forex operations of the foreign exchange market, showed a decrease in its exchange value against the main world currencies, especially against the US dollar (USD). According to economic correspondents in connection with analysts of brokerage companies and financial strategists of investment banks, the exchange value of the EUR fell in direct response to published information as part of the regular reporting from the last meeting of the central bank of the US Federal Reserve System (FED), known as the FED minute book.
According to the published information in the so-called FED minute book, which reports a detailed record 3 weeks after the meeting of the central bankers of the USA as part of the meeting of the Federal Open Market Committee (FOMC), which is the only one authorized to set interest rate increases. And it was this last meeting, which in July of this year 2023 again increased by 25 basis points (0.25% p.a.) the basic interest rate, which had already reached a range of 5.25-5.5% per annum, showed that FOMC members are likely to continue raising rates in 2023. According to these detailed minutes from the meeting of the Federal Reserve Board of the United States FED, FOMC members still see persistent inflationary risks that may lead to further increases interest rates in the US. Furthermore, the European financial market and especially the exchange value of the EUR has been affected in recent hours by investor sentiment in connection with the decline of Asian markets due to the apparent relative instability of the Chinese economy, together with the reasonable suspicion that China is falsifying its economic data about the state of its national economy in relation to global financial markets.
In response, whether directly or indirectly, the international foreign exchange market reacted to these facts and within the forex operations of this market, where, based on investor sentiment, the exchange value of the single European currency, the euro (EUR), decreased against the main world currencies and especially against the US dollar (USD) as the world’s reserve currency and the world’s main commodity currency. Currently, this so-called global currency pair of the euro (EUR) and the US dollar (USD) traded at a mutual exchange rate of 1.086 during the European Thursday morning on August 17, 2023, at approximately 6:45 CET USD to EUR with the EUR down by -0.092% against the USD for the day so far. The drop in the exchange value of the EUR was reflected not only against the USD, but also in the exchange rate against other major world currencies, which form part of the currency basket of the DXY dollar index (US Dollar Currency Index), which measures the strength of the USD including the EUR, such as the British pound ( GBP), Swiss franc (CHF) or Japanese yen (JPY).
According to the financial strategists of the foreign exchange market, the interesting fact is that the euro weakened against the Japanese yen at a time of crisis development and the collapse of the Asian financial markets. The currency pair of the single European currency Euro (EUR) and Japanese Yen (JPY), as one of the key currencies of the Asian economy, was traded on the foreign exchange market at a mutual exchange rate of 159.08 JPY per EUR on the indicated day and time, with a daily decrease so far EUR by – 0.057% exchange rate against JPY. The Euro continued to lose its exchange value against the British Pound (GBP) as the EUR/GBP currency pair traded at 0.854 GBP/EUR with the EUR down by -0.059% against the GBP for the day. The Euro/Swiss Franc exchange rate did not show a change in the trading trend in the final hours of the start of the European Thursday 17/08/2023 either, and EUR/CHF was trading at 0.957 CHF/EUR with a -0.052% EUR/CHF drop for the day so far. According to financial strategists, other economic facts such as the trade balance of the eurozone and data on the level of inflation in Croatia, as a newly acceded country to the eurozone, will play a certain role for traders and investors in relation to their investment sentiment for the further development of the exchange value of EUR.
