The expectations of the euro are being renewed 1.20 dollars with the variation of interest in Europe and America

The euro exchange rate is increasing again against the dollar, on the way to a $ 1.20 level, with investors betting on the benefit of the common European currency of increasing contrast in the roads to determine interest rates between the US Federal Reserve and the European Central Bank. The euro’s exchange rate rose 0.1% to $ 1,1780, which is the highest level since July 24, before it eradicated its profits before the upcoming European central central decision. Options contracts reinforce this trend, through “the opposite of risk”, which shows moral optimism at the level of all the dates of law. The data issued by the deposit and cleaning company “Deposit Trusting” indicates that one of the three optimistic bets since Friday aims to be more than $ 1.20. Thomas Boro, co -manager of the exchange rate options in ‘Societe Generale’, said the $ 1.18 price is the next head resistance level, as the orders of the stop of losses and the rate of profits can accelerate. The slowdown in the labor market reinforces the ‘federal’ reduction in interest rates, and strengthens the poor agricultural work data, released last week, the profits of the euro, as it motivated the Federal Reserve expectations to reduce interest rates at a larger rate and negatively affect the dollar. Meanwhile, the European Central Central has temporarily suspended the monetary facilitation course, and the financial markets estimate the bank’s possibility to lower interest rates by December by only the third. The reference adjustment of work data in the United States will further support the euro. Also read: Changing US Labor Market data by lowering 911 thousand jobs in light of the high unemployment rate in the United States to the highest level since 2021, some analysts see a possibility of lowering interest rates by the Federal Reserve. Standard charged strategic analysts currently expect half a point in the interest rates meeting next week. “The basic periodic support of the dollar decreases, which is reflected in a significant shrinkage in the interest rate teams between the euro and the United States, which now corresponds to the fair financial value of the euro price at the dollar in a range between 1.18 and 1.20”. He added: “It goes without saying that the additional discount on interest rates by the Federal Reserve from the current period will improve the motives of foreign investors to protect the dollar assets.” The political crisis in France can limit the euro increase. The euro also ignored the political dangers in France, as 0.4% rose on Monday despite the loss of Prime Minister Francois Bayro who voted for confidence in parliament. The hedging costs rose from the highlight of the euro at the same time. Also read: The euro area increases more than 2%, and strengthens the expectations of keeping the benefit without turning the books of “Danske Bank” into a memorandum that the width of the difference between the income of French effects can limit the height of the euro, but they still see the euro exchange rate against the dollar in less than its value. The chief economist in ‘Berenberg’, Holgher Schmiding, indicated that France could be subjected to a credit rating after the fall of Bayro, although the possibility of a comprehensive crisis is still excluded due to the semi -balanced current account. Technical indicators support the euro and add: “The European central central president, Christine Lagarde, will carefully choose her words next Thursday not to indicate the possibility of the bank’s intervention to save a country that continues its financial mistakes without remorse, and at the same time does not take a strict stand that causes the disturbance in the markets.” Also read: Macron chooses Sebastian Lecorno at the head of the government of France. Technical indicators change in a direction that supports the euro; Known as the ‘Bullish Belt Hold Line’ is formed in the monthly graph, which is an indication of the possibility that the euro should return to the highest level against the dollar in July at $ 1.1829. In the short term, known as the ‘Fear-Trail indicator’, it seems to be at the peak of the euro, the most powerful investment centers in more than two months.