Around 9:15 p.m., the greenback took 0.18% once morest the single European currency, at 1.0847 dollars for one euro.
The dollar recovered on Monday once morest most major currencies, thanks to a drop in risk appetite at the start of a week full of indicators and central bank meetings.
Around 8:15 p.m. GMT, the greenback gained 0.18% once morest the single European currency, at 1.0847 dollars for one euro. He was even bolder once morest currencies considered more volatile such as the pound sterling (+0.26%), the Australian dollar (+0.58%) or the Norwegian krone (+0.88%).
Since the beginning of the year, the wind of optimism in the markets has given momentum to assets that suffered last year, in particular emerging market currencies.
Conversely, the main victim of this movement was the dollar, already badly positioned at the end of 2022.
“After the month we’ve had, there’s probably some risk reduction” in portfolios and market positions ahead of a series of major maturities this week, said Mazen Issa of TD Securities.
The US central bank (Fed) meets on Tuesday and Wednesday, followed by the European Central Bank (ECB) and the Bank of England (BoE) which will meet on Thursday.
Traders expect a quarter-point hike in the Fed’s key rate, but a half-point hike in ECB and BoE rates, which began tightening later than the US central bank and are faced with higher levels of inflation than in the United States.
On Monday, the euro zone recorded higher than expected price indices in Spain (+5.8% over one year for consumer prices in January) and Italy (+2.9% over one month for retail prices). production in December).
More than the rate decision, traders will be most interested in Fed Chairman Jerome Powell’s press conference.
According to Mazen Issa, following having believed for several months in the determination of the Fed to raise rates at a forced march, the market now has doubts.
Guided by recent indicators, slowing inflation and decelerating growth, the market even anticipates rate cuts by the end of the year, although central bankers are ostensibly ruling out this hypothesis for 2023.
For Mazen Issa, at this point, macroeconomic data matter more than Fed decisions or speeches.
The indicators for the week, in particular the monthly report on employment in the United States expected on Friday, should thus provide information on the trajectory of the economy and monetary policy in the months to come.