09 November, 2018
EUR/USD extended losses on Friday falling to its lowest rate in one week (1.13387). The dollar gained versus the euro on Friday as the U.S. Federal Reserve kept interest rates steady at 2.25% but reaffirmed its monetary tightening stance, setting the stage for a rate hike in December. The Fed has raised its key policy rate three times this year, and the market expects another rate hike in December on the back of a robust U.S. economy, rising inflation and solid jobs growth. The euro remained under negative pressure as traders reacted to negative news out of Europe. The European Commission forecast on Thursday that the Italian economy would grow more slowly than Rome thinks in the next two years, leading to much bigger budget deficits than assumed by the new government. Later this afternoon, investors could be expected to turn focus to PPI data for October in the US (13:30 GMT).