2023-04-17 20:45:30
Around 10:20 p.m., the greenback gained 0.58% once morest the single currency, to 1.0928 dollars for one euro.
The dollar regained height on Monday, driven by the recalibration of the expectations of forex traders, who no longer believe in a major impact of the banking crisis and see the American central bank (Fed) remaining firm in the medium term.
Around 8:20 p.m. GMT, the greenback gained 0.58% once morest the single currency, to 1.0928 dollars for one euro. The common currency of 20 European countries has dropped more than 1.50% in a few hours since its highest in a year, Friday, at 1.1076 dollars.
“Signs of resilience in the main US growth engine (consumption) as well as talk of another rate hike by Fed members have helped the dollar recover,” Joe said in a note. Manimbo, from Convera.
For Mazen Issa of TD Securities, as soon as the Fed changed its tone, which accompanied that of other major central banks several weeks ago, “the market celebrated and reacted as if they were cutting rates. But this is not the case”.
In addition, recalls the analyst, with the banking crisis at the beginning of March, the operators “integrated a financial tidal wave” into their forecasts, with, as a result, a violent brake on the economy, scenario which further supported the hypothesis of multiple rate cuts to come.
But the threat did not materialize and results from several banks, released on Friday, showed the sector was still doing well.
“Most commentaries since (the crisis) have noted that the tightening of credit conditions has appeared moderate so far and considered the (three) bank failures to be specific cases,” Goldman Sachs analysts said in a statement. note.
In a context that sees the employment market still vigorous and inflation remaining at levels well above the Fed’s long-term objectives, the market is being prompted to revise its projections in terms of monetary policy.
Traders are now anticipating a policy rate by the end of 2023 that is only a quarter of a percentage point lower than its current level, whereas a month ago they expected a decline of one full point, or four rate cuts. by the end of the year.
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