Pound at two-year high

The euro remained little changed on Tuesday at $ 1.13. In the afternoon, the euro was trading at $ 1.1297, around the same level as the previous evening.

Speculation that the Bank of England (BoE) would hike interest rates boosted the pound sterling. At 1.1989 euros, the British currency was as expensive as it was two years ago. The BoE is expected to raise the key rate in early February, while such a step is not in sight at the ECB, says economist Colin Asher of the investment bank Mizuho.

The Japanese yen continued to be under significant pressure. In trading with the dollar, the currency of the world’s third largest economy hit its lowest level in five years. In the market, reference was made to investors’ growing optimism about the economy. Investors’ greater willingness to take risks is putting a strain on the Japanese yen, which is valued by many investors as a relatively safe investment. The Japanese currency is seen by many as a so-called safe haven – partly because the majority of Japanese debts are held by domestic creditors.

In the crude oil market, investors did not expect a major decline in demand from Omikron, wrote the analysts at the investment bank RBC Capital Markets. After all, there are no widespread lockdowns in sight like last year. The price of Brent oil was therefore one percent higher. At the same time, stockbrokers excitedly awaited the advice of the major producing countries about their production quotas. According to insiders, “Opec +”, which includes the members of the export cartel as well as other countries such as Russia, will once again decide, as in the past few months, to increase production volumes.


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