The dollar remains stable on Monday, awaiting developments on the trade warfront launched by Donald Trump, the trade in also digesting new American economic data. Around 5:05 p.m. GMT, the greenback released 0.09% compared to the single currency, to 1.1307 dollars for one euro, and abandoned 0.03% against the book, to 1.3276 dollars. The dollar index, which compares the American currency to a basket of other large currencies, lost 0.10%, at 99.93 points.
“The US dollar starts the week in weak forks” due to “The uncertainty about the trade policy of the United States”summarize the analysts of Monex USA, in a note. Last week, the dollar had regained strength thanks to “The prospect of appeasement of trade tensions” Particularly between Beijing and Washington, explains to AFP Éric Theoret, from Scotiabank.
For the time being, no agreement has been made, but negotiations were reported, in particular with Japan or the European Union, adds the analyst. During an interview broadcast on American television on Sunday, Donald Trump also defended his trade war, claiming to have “Defined to lower prices”.
The American president said the United States was in “A transition period” and that the country will know later “The biggest economic boom in history” thanks to its political choices. On the bullish side, the «buck» – One of the nicknames of the American currency- was supported by the publication of the investigation of the Professional Federation ISM, which showed that activity in the services has progressed in April in the United States, above expectations.
The index measuring this activity amounted to 51.6% in April, against 50.8% the previous month, according to the investigation of the ISM professional federation. Analysts awaited him lower, at 50.4%, according to consensus compiled by briefing.com. “We are skeptical of a dollar rise (…) whatever the evolution of the American data”however, comment on Brown Brothers Harriman analysts.
Bover also awaits the new meeting of the American Central Bank (Fed). Despite the repeated calls by Donald Trump for a drop in interest rates, the outcome of this meeting is hardly in doubt in the vast majority of finance players. The monetary institution should leave its rates at the level which has been theirs since December, in a range between 4.25% and 4.50%.
