Currency Rates Fluctuate as Euro Weakens, Gold Reaches New Highs – October 9
Currency markets are reacting to economic concerns and geopolitical developments on Thursday, October 9. The euro is currently trading at USD 1.163, down 0.03% as fears grow regarding the debt accumulation in the Eurozone’s second-largest economy.
“Markets are very afraid of the second economy of the euro zone which was already not the most stable pillar of this currency, will continue to accumulate debt,” stated Jacek Przygórzewski, main currency dealer of InternetowyKantor.pl. “For the first time in over a month, we approached the level of USD 1.16 per EUR 1, and looking at the dynamics of the movement, this may not be the end.”
Simultaneously occurring,gold has stabilized above the $4,000 mark,reaching $4,033 per ounce on Thursday morning,after surpassing that level for the first time on Wednesday. This surge is linked to a “large flight from the dollar and a sharp change in expectations regarding interest rates,” according to Przygórzewski, making US bonds less attractive.
However, Marek Rogalski, chief currency analyst at DM BOŚ, cautions that “gold prices have already entered speculative hyperbole,” attributing the increase to the “FOMO effect” and widespread media coverage. He notes a slowdown in the momentum of other precious metals. The dollar is experiencing gains, partly driven by the ceasefire agreement between Israel and Hamas.
Several macroeconomic events scheduled for today could further influence currency rates, including foreign trade data from Germany (08:00), industrial production figures from Turkey (09:00), the release of minutes from the European Central Bank meeting (13:30), a public speech by Fed Chairman Jerome Powell (14:30), and a speech by the head of the National Bank of Poland (NBP), Adam Glapiński (15:30). The Polish Sejm will also begin its final session of the day at 9:00,focusing on the draft of next year’s budget.
Sources: Stooq.pl, macroNEXT, InternetowyKantor.pl, DM BOŚ, IAR.
