The euro starts to rise again against a weakened dollar

Around 9 p.m., the euro gained 0.23% against the greenback, at 1.1783 dollars.

The euro started to rise again on Tuesday against the dollar after two sessions of decline, the health crisis in the United States and the procrastination in Congress around a new stimulus plan weighing on the US currency.

Around 7:00 p.m. GMT (9:00 p.m. in Paris), the euro gained 0.23% against the greenback, at $ 1.1783.

Demand for dollars “is declining due to the worsening health crisis in some of the most populous US states, as well as the political feud in Washington, which blocks the economic bailout,” commented Ricardo Evangelista.

For the expert, the fall of the euro against the dollar Friday and Monday had been above all “technical”, after the best months of the European currency against the dollar for a decade.

American Republicans and Democrats continued their negotiations on Tuesday to reach an agreement on new aid for the millions of Americans unemployed because of Covid-19, but also for struggling businesses and local communities.

The tone was more optimistic Monday evening, even if a consensus still seemed distant between the two parties with tense relations three months before the presidential election.

So much so that the American president has declared that he is considering acting without waiting for Congress, by decree, to prevent evictions of tenants and reduce wage costs.

In addition, “the Bundesbank confirmed yesterday (Monday) that it would continue to participate in the program of repurchase of the ECB after the end of the period” granted by the German Constitutional Court, underlined Lee Hardman, analyst for MUFG.

In a resounding judgment in early May, the German Constitutional Court criticized the ECB’s lack of proportionality and justification in its debt buybacks on the market.

The German supreme judges had demanded that the ECB provide an answer by August, failing which the German Central Bank would be prohibited from participating in this heavy program of more than 2.600 billion euros since 2015.

At the beginning of July, the German deputies, in the wake of the government, had given their support to the aid programs of the ECB.

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