The euro was trading from $0.9962 to $1,0052 around 15:00 GMT. at the closing hours of European forex market trading the previous day.
The ECB has set the reference exchange rate for the euro at $1,0049.
“The ECB raised interest rates by 75 basis points at a crucial meeting yesterday and clearly communicated an aggressive stance to the markets, leading to another 75 basis point increase at its October meeting,” Monex analysts Europe said.
This did not necessarily help the euro immediately, because single currency fell firstbut they add that the impact of higher implied interest rates and short-term yields is visible today, with euro trading again above par.
Markets discount it most Federal Reserve (Fed) Will raise interest rates 75 basis points this month therefore, the appreciation of the dollar will not gain further momentum.
Markets will pay attention to the decision of European Union (EU) countries to temporarily intervene in an electricity market emergency to reduce energy costs for consumers and companies.
The main proposals in the table include: a limit for Russian gas, a 200 Euro/MWh (megawatt hour) cap on the price of non-gas electricity, agreement with Member States. reduce energy demand by 10% per month and tax on electricity generatorsAccording to Monex Europe.
The energy crisis could plunge Europe into recession, putting downward pressure on the euro.
The single currency traded in a volatility band between $1,008 and $1,0111.