ECB Hikes 0.25%, Pushing Rates To 22-Year Highs: Lagarde Says 'We Have More Ground To Cover'
Portfolio Pulse from Piero Cingari
The European Central Bank (ECB) has increased its key interest rates by 0.25% to combat inflation, resulting in the highest borrowing costs in over two decades. The euro strengthened against the dollar, while European equities slightly weakened.
June 15, 2023 | 2:06 pm
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POSITIVE IMPACT
The Invesco CurrencyShares Euro Currency Trust (NYSE:FXE) rose 0.5% to the 100.50 level as the euro strengthened against the dollar following the ECB's interest rate hike.
The ECB's decision to increase interest rates has led to a stronger euro against the dollar. This directly impacts the Invesco CurrencyShares Euro Currency Trust (FXE), which tracks the performance of the euro against the dollar, causing its value to rise.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
The SPDR DJ Euro STOXX 50 ETF (NYSE:FEZ) slightly weakened as European equities reacted to the ECB's interest rate hike.
The ECB's decision to increase interest rates has led to a slight weakening in European equities. This directly impacts the SPDR DJ Euro STOXX 50 ETF (FEZ), which tracks the performance of European equities, causing its value to decrease.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100