2023-12-01 18:22:26
Around 9 p.m., the greenback gained 0.10% against the euro to 1.0877 dollars per euro. The dollar, however, lost 0.59% against the pound at 1.2699 dollars.
The dollar, which initially declined following remarks from the president of the American central bankstabilized on Friday against the weakening euro.
Around 8:00 p.m. GMT, the greenback gained 0.10% against the euro to 1.0877 dollars per euro. The dollar, however, lost 0.59% against the pound at 1.2699 dollars.
The European currency was in bad shape against the yen (-0.99%), the Swiss franc (+0.78%) and the British pound (-0.70%).
US key rates have been “taken deep into restrictive territory”, and “this strict monetary policy is putting downward pressure on economic activity and inflation”, Jerome Powell, Chairman of the Fed, said on Friday. a speech at Spelman College in Atlanta, Georgia.
The head of the central bank, however, recalled that “it would be premature to conclude with certainty that we have reached a sufficiently restrictive level, or to speculate on when (monetary) policy could be relaxed”.
For Tastylive’s Christopher Vecchio, “the mere fact that Mr. Powell mentioned future easing of monetary policy is a subtle change in direction.”
“In the past, he had said that the policy was restrictive but this time he mentioned a ‘sufficiently restrictive’ policy: this is a clear indication that there will be no further increase in rates,” assured the ‘analyst interviewed by AFP.
The bond market thus interpreted these words, ten-year yields sliding further to a new low for almost three months at 4.22% compared to 4.32% the day before.
On Thursday, the PCE price index, the Fed’s preferred gauge, reported that U.S. inflation continued to slow in October in the United States, falling to 3.0% year on year.
“Things are more worrying on the euro side,” said Marc Chandler of Bannockburn Global Forex, pointing out that the drop in inflation in the euro zone and the contraction of France’s GDP in the third quarter made a drop in prices possible. rate of the European Central Bank (ECB) during the first quarter.
The pound
British capital took advantage of the statements of a member of the British central bank (BoE), Megan Greene, who “remained firmly in favor of a further increase in the BoE’s key rate”, underlined Derek Halpenny, analyst at MUFG.
As a result, “the market now anticipates a reduction of 25 basis points (in the interest rate) by the BoE in August next year”, i.e. later than the European Central Bank (ECB) and the Fed, concludes the analyst.
For its part, gold came close to its record reached in August 2020 at $2,075.41, when it reached $2,075.47.
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