2023-08-22 10:18:03
London (awp/afp) – The dollar fell slightly against the euro and the pound on Tuesday, weighed down by a return of risk appetite in the markets, even if traders are cautious before the meeting of central bankers in Jackson Hole.
Around 09:35 GMT (11:35 a.m. in Paris), the dollar fell 0.03% to 1.0899 dollars for one euro, and lost 0.14% against the pound at 1.2774 dollars for one pound.
The dollar started the week slightly down, losing ground against other major currencies, after the Dollar Index, which compares the greenback to a basket of major currencies, touched its highest level on Friday since mid-June.
“The greenback’s losses can be attributed to the return of risk appetite in the markets,” said Ricardo Evangelista, analyst at ActivTrades, which weighs on the safe haven dollar.
However, any decline in the dollar should remain “limited” according to the analyst, “as trading for the currency will likely remain in a relatively narrow price range ahead of Jerome Powell’s Jackson Hole speech on Friday.”
The market’s attention should indeed be focused on the annual meeting of central bankers in Jackson Hole in the United States which begins on Thursday. Mr. Powell, chairman of the US Federal Reserve (Fed) and Christine Lagarde, president of the European Central Bank, are due to deliver speeches on Friday.
Currency traders will be looking for clues on the future of the monetary policy of the two institutions.
“The resilience of the US economy to rising rates continues to surprise investors and has prompted them to lower their expectations of a possible rate cut next year,” said Lee Hardman of MUFG.
However, the market is still counting on reductions of around 100 basis points in US key rates next year, the analyst points out, however.
Tuesday class Monday class
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09:35 GMT 9:00 PM GMT
EUR/USD 1,0899 1,0896
EUR/JPY 158.79 159.32
EUR/CHF 0.9569 0.9572
EUR/GBP 0,8532 0,8541
USD/JPY 145,69 146,22
USD/CHF 0,8779 0,8785
GBP/USD 1,2774 1,2756
afp/lk
1692701010
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