Unloved euro catches a breath ahead of ECB - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.

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The euro took a breather on Wednesday ahead of this week’s central bank meeting, while commodity currencies eased from recent peaks as investors reckoned conflict-driven surges in energy, grains and metals could end up crimping demand in the long run.

The euro was steady in early trade and has recovered to $1.0898 from Monday's 22-month low of $1.0806, helped by a Bloomberg News report which citied unnamed officials and the European Union was discussing joint bond issuance.The euro was steady in early trade and has recovered to $1.0898 from Monday's 22-month low of $1.0806, helped by a Bloomberg News report which citied unnamed officials and the European Union was discussing joint bond issuance.

“Our near-term pessimism is driven by a view that investor fears that the war could extend beyond the Ukraine’s borders will not dissipate quickly,” said Standard Chartered’s global head of G10 FX research, Stephen Englander. The European Central Bank meets on Thursday with the spectre of stagflation prompting economists to figure that policymakers might delay rate hikes until late in the year.

 

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