The greenback moved away from its recent peaks once morest the euro and lost 1.24% around 4 p.m., to 0.9949 dollars, the single currency returning to the 99 cent mark for the first time since September 21.
The dollar lost ground once morest the euro and the pound on Tuesday, as the safe-haven asset suffered from a renewed appetite for risk and a market that envisages a slower pace of monetary policy tightening in the United States. .
The greenback moved away from its recent highs once morest the euro and lost 1.24% around 2:00 p.m. GMT, to 0.9949 dollars, the single currency returning to the 99 cent mark for the first time since September 21.
A disappointing economic indicator in the United States on Monday and a lower-than-expected rate hike in Australia on Tuesday were enough to boost hopes that the level of Fed rate hikes had been overstated.
“Basically, not much has changed, but there are a lot of hopes in the market,” remarked Fawad Razaqzada, analyst at City Index.
The euro is benefiting in particular from a drop in European gas prices, which are at their lowest since July.
And a disappointing economic indicator on Monday is prompting investors to bet on a more cautious US central bank (Fed) to avoid dragging down activity, ahead of the employment report to be published on Friday.
But many analysts were urging caution and watching closely what Fed officials say in the days ahead.
“If supporters of tighter monetary policy take center stage, it might rekindle speculation of Fed rate hikes,” said FXTM analyst Lukman Otunuga.
Currency traders also fed their bets on the Fed from the action of the Australian central bank, which raised its rates by 0.25 percentage points once morest 0.5 points in recent months.
“Will the Fed follow the lead of the Reserve Bank of Australia (RBA) and shift to a slower pace of monetary policy tightening, which would make the dollar frown and boost other currencies?” asks Kit Juckes, analyst at Societe Generale.
On the pound side, investors were closely following the tensions within the Conservative Party over the unquantified budget announcements, which had caused a stir in the markets at the end of September.
The pound had then reached a historic low of 1.0350 dollars. Tuesday, it resumed 0.63%, its sixth consecutive session of increase, to 1.1395 dollars.
After renouncing on Monday, within this expensive plan of energy aid and tax cuts, a lowering of the tax rate for the richest, Downing Street might publish the figures for its budget earlier than expected. , reports the British press.
