The euro is currently trading at the lowest level since late January against the U.S. dollar as currency traders push the American currency higher amid rising expectations that the U.S. Federal Reserve is preparing to raise interest rates at their next policy meeting in December and alongside expectations for stronger economic growth under a Trump administration through infrastructure stimulus spending and lower taxes.
The euro is currently trading at 1.0794 against the U.S. dollar, the lowest level since January 25th.
According to the CME Group’s Fed Watch, there is a current 85.8 percent probability that the U.S. Federal Reserve will decide to raise interest rates by 0.25 basis points to a range of 0.50- 0.75 percent with the federal funds during their upcoming policy meeting on December 14th
The Federal Reserve hasn’t raised interest rates since December 2015.
Later this morning, U.S. retail sales for October will be reported and provide the market with a clearer understanding about the health of retail spending in the U.S. economy.
Obama Holds Press Conference and Talks About Trump Temperament, Environmental Policy
On Monday U.S. President Barack Obama held a press conference in Washington before his final overseas trip to Europe and South America.
Obama commented about a range of topics from the temperament of president elect Donald Trump to the positive changes that have resulted through his past support of the landmark Paris climate change agreement and pro-growth environmentally friendly policies.
Obama said that there are going to be certain elements of Trump’s temperament that will not serve him well in the White House unless he recognizes them and corrects them.
“Because when you’re a candidate and you say something that is inaccurate or controversial, it has less impact than it does when you’re President of the United States. Everybody around the world is paying attention” Obama said.
Obama also spoke about his support for the Paris Agreement that was made in 2015 with 200 other countries to help lower carbon emissions and to cool the earth’s rising temperature.
Obama explained that his administration has shown over the past 8 years that its possible to grow the economy and also bring down emissions.
“It’s not just a bunch of rules that we’ve set up. You’ve got utilities that are putting in solar panels and creating jobs. You’ve got the Big Three automakers who have seen record sales and are overachieving on the fuel efficiency standards that we set” Obama said.
“Turns out that people like not having to fill up as often and save money at the pump, even if it’s good for the environment” Obama added.
Obama pointed out that 40 percent of the United States already lives under Paris agreement and Clean Power Plan rules because many U.S. states are actively pursuing what’s embodied in their environmental guidelines.
“And you’ve got some of the country’s biggest companies, like Google and Walmart, all pursuing energy efficiency because it’s good for their bottom line” Obama said.
Obama explained that the Paris agreement intends to help other industrialized countries that are carbon emitters to be held to the same guidelines as other participating countries.
“What the Paris agreement now does is say to China and India and other countries that are potentially polluting, come onboard; let’s work together so you guys do the same thing” Obama said.
President elect Donald Trump has spoken about canceling the Paris Agreement and providing more support for the fossil fuel industry.