On 26 October 2022 the value of euro rose above that of U.S. dollar. The drop of value of U.S. dollar when compared to other notable world currencies was caused by concerns over the state of the U.S. economy and perspectives of a slower interest rate rise.
The value of euro before U.S. dollar increased for the first time since mid-September. It was promoted by forecasts of the European Central Bank implementing a major increase of interest rates on Thursday, 27 October.
According to ActivTrades senior analyst Ricardo Evangelista, the value of the U.S. dollar fell following «a string of negative (U.S.) economic data released since the beginning of the week».
Investors welcomed negative economic data because it opens the way for the possibility of the U.S. Federal Reserve System potentially increasing interest rates.
Prices of shares on Wall Street, which previously increased following the hope of a more moderate policy from the Federal Reserve System, mostly dropped on Wednesday, 26 October, following poor revenue results reported by Boeing, Microsoft and Alphabet.
On the other hand, prices of shares at London, Frankfurt and Paris exchanges increased.
Dow Jone Indistrial Average index remained unchanged on Wednesday and was 31 839.11, Standard & Poor’s 500 dropped by 0.7% to 3 830.60, whereas Nasdaq Composite index dropped by 2.0% to 10 970.99.
FTSE 100 index increased by 0.6% on Wednesday, reaching 7 056.07. DAX 30 index increased by 1.1% to 13 195.81, and CAC 40 index increased by 0.4%, reaching 6 276.31.
The price of WTI brand crude at New York exchange’s electronic system increased by 3.0% on 26 October, reaching 87.91 USD/barrel. The price of Brent at London exchage increased by 2.3%, reaching 95.69 USD/barrel.
On Wednesday Euro value before U.S. dollar increased from 0.9966 to 1.0087 USD/EUR, British pound sterling value before U.S. dollar increased from 1.1472 to 1.1621 USD/GBP, and the value of U.S. dollar before Japanese yen dropped from 147.93 to 146.39 JPY/USD.
Euro value before British pound sterling dropped from 86.88 to 86.77 GBX/EUR.