London (AWP/AFP) – The dollar is backwards Tuesday still sealed by concerns about the repercussions of the commercial policy led by Donald Trump, pending more clarity on the orientations of the American Federal Reserve (Fed), which meets until Wednesday.
Around 3:25 p.m. GMT (5:25 p.m. in Paris), the greenback lost 0.27% against the euro, at 1.1345 dollars, and 0.53% against the book, at 1.3368 dollars.
The recent employment data, more favorable than anticipated, tempered expectations in terms of drop in American rates, and the market expects the Fed to leave its rates unchanged on Wednesday.
But “this position of the Fed (…) is already integrated into the market”, specifies Stephen Innes, analyst at SPI AM.
The book benefits more than the euro of the current “desire for dollar diversification” of investors, worried about the American economy, because “the United Kingdom benefits from relative political stability, in particular compared to Germany”, estimates Kathleen Brooks, analyst at XTB, interviewed by AFP.
The Curator Friedrich Merz has indeed suffered a historic camouflet on Tuesday, forced to a second ballot in front of the German deputies in an attempt to be elected Chancellor, after having failed to obtain the majority required in the first round.
After a sharp rise in previous sessions due to rumors about possible trade agreements with the United States, the new Taiwan dollar reflected 0.69% against the US dollar on Tuesday, and the South Korean Won also relaxed ballast against the greenback.
In Romania, after the overwhelming victory of the extreme right in the first round of the presidential election, Romanian Social Democratic Prime Minister Marcel Ciolacu announced his resignation on Monday, and was temporarily replaced by the Liberal Minister of the Interior.
The prospect that the far-right candidate George Simion wins the elections on May 18 arouses “concerns about a possible renunciation of the country to his pro-element and the ability of the government to apply a budgetary tightening”, while Romania displays the worst public deficit of the twenty-seven, underlines Nicholas Farr, analyst at Capital Economics.
Faced with this political instability, the Romanian Leu fell 1.87% against the greenback, at 4,4842 Lei for a dollar, and 2.14% against the euro, at 5.0875 Lei.
This unusually abrupt movement indicates, according to Bloomberg that the Romanian central bank has released its control over its currency, so far maintained in a narrow range – within the framework of a “controlled floating” regime of the exchange rate, where it can fluctuate but where the country’s monetary authority can intervene to stabilize or guide it.
Cours de mardi Cours de lundi 15H25 GMT 21H00 GMT EUR/USD 1,1345 1,1315 EUR/JPY 162,10 162,59 EUR/CHF 0,9351 0,9303 EUR/GBP 0,8487 0,8509 USD/JPY 142,87 143,70 USD/CHF 0,8242 0,8222 GBP/USD 1,3368 1,3296
AFP/Rp
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