Washington (AWP/AFP) – The dollar was gaining ground on Thursday, the trades wanting to believe in the good economic health of the United States, while the yen dug its losses due to the prudent tone of the Banque du Japan (BOJ), which could delay a new increase in rate.
Around 6:30 p.m. GMT, the greenback earned 0.43% against the European single currency, at 1.1279 dollars for one euro.
The dollar index, which compares the American currency to a basket of other large currencies, advanced by 0.81%, to 100.27 points.
“Despite the disappointing estimate of employment in the private sector (ADP) and the contraction of American GDP in the first quarter, the Dollar Index has displayed its highest level for three days,” observes in a note Marc Chandler, by Bannockburn Global Forex.
“The market feels much better concerning the American economy (…) at present”, even if “there are a lot of winds,”, notes with AFP Adam Button, of Forexlive.
The manufacturing activity index of the Professional Federation ISM posted Thursday in April, at 48.7, against 49 in March.
This withdrawal is nevertheless less marked than that anticipated by the consensus of the analysts questioned by Bloomberg, at 47.9.
The “+ tidal wave+ of economic disturbances and the supply arising from customs duties has not yet struck the American coast in a major way”, analyzes Matthew Weller, of Stonex.
However, “the risks arising from the trade war have not disappeared,” tempers Mr. Button.
Latest news: Mexican president Claudia Sheinbaum said Thursday that she had agreed with her American counterpart Donald Trump to work on the improvement of the trade balance between the two countries, one of the republican arguments to impose customs duties.
In addition, “the White House suggested that it would announce a trade agreement in the course of the day,” said Mr. Button.
But, “even if we get an agreement today, this is only one among dozens of others (…) I don’t see many reasons to be optimistic,” said the analyst.
In addition, the Yen continued to retreat, after a two -day meeting, the Japanese central bank left, as expected, its unchanged key rate at 0.5%on Thursday.
By the way, she took advantage of it to halve her growth forecast over the 2025 budget year started in early April in Japan, at 0.5% against 1.1% previously expected.
What “encourage market players to postpone their expectations concerning the next increase in BOJ rates at the end of the year at the earliest”, notes Lee Hardman, analyst at MUFG.
Consequently, around 6.30 p.m., the yen fell 1.77% to 145.70 yen for a dollar.
Cours de jeudi Cours de mercredi 18H30 GMT 21H00 GMT EUR/USD 1,1279 1,1328 EUR/JPY 164,37 162,01 EUR/CHF 0,9386 0,9360 EUR/GBP 0,8503 0,8500 USD/JPY 145,70 143,07 USD/CHF 0,8316 0,8258 GBP/USD 1,3275 1,3329
AFP/Rp
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