2023-05-17 20:40:48
By Le Figaro with AFP
Posted update
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The dollar ahead on Wednesday, buoyed by positive news on the US debt ceiling and by the perception that the US economy is more resistant to monetary tightening than other countries. Around 8:10 p.m. GMT, the greenback appreciated by 0.20% once morest the single currency, at the dollar for one euro. Earlier, the queen currency had risen to its highest level once morest the euro for a month and a half, reinvigorated following several difficult weeks. “The tone of Congress is improving on the debt ceiling”observed ForexLive’s Adam Button.
“Signs of Resilience”
US President Joe Biden said on Wednesday that the Republican leaders in Congress, with whom he spoke on Tuesday, “agreed to avoid default by the United States”. Negotiations are continuing for a budget plan satisfactory to the Republican opposition, without which the debt ceiling cannot be raised. The “greenback”, one of the nicknames of the dollar, is also surfing on “signs of resilience in the US economy, which have ruled out the prospect of the Federal Reserve (Fed) cutting rates soon”commented, in a note, Joe Manimbo, of Convera.
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Operators have changed their expectations and are now counting on a first rate cut in November only, at the earliest, once morest September on Tuesday. They even attribute a probability of almost a quarter to a new hike at the next Fed meeting in mid-June. “The impression is gaining that the US economy is more resilient to a high rate environment than other developed countries”explained Adam Button.
Recent indicators have thus given the image of an economy that is decelerating but very gradually, with a job market and consumption that are still vigorous. In the euro zone, on the other hand, the news is more worrying, in particular in Germany, where the monthly index of the ZEW institute showed a marked deterioration in investor sentiment on Tuesday, the barometer falling into the red for the first in five months. . According to Adam Button, a definitive agreement on raising the debt ceiling avoiding a default might even give a further boost to the greenback and bring it down below 1.08 dollars once morest the euro.
Wednesday class Tuesday class
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8:10 PM GMT 9:00 PM GMT
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EUR/USD 1,0840 1,0862
EUR/JPY 149.17 148.15
EUR/CHF 0.9737 0.9738
EUR/GBP 0,8678 0,8700
USD/JPY 137,62 136,39
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USD/CHF 0,8983 0,8965
GBP/USD 1,2489 1,2488
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