Around 4 p.m., the greenback fell by 0.82% against the euro, to 1.0394 dollars, and fell by 0.82% against the pound, to 1.2513 dollars, after falling by more than 1% against these two currencies.
The decline in the dollar slowed slightly on Monday, as US President-elect Donald Trump denied reports from Washington Post according to which the customs duties that it intends to put in place will be more limited than announced.
Around 3:00 p.m. GMT (4:00 p.m. in Paris), the dollar fell by 0.82% against the euro, to 1.0394 dollars, and fell by 0.82% against the pound, to 1.2513 dollar, after falling by more than 1% against these two currencies.
“The article from Washington Post, citing so-called anonymous sources, which do not exist, falsely claims that my tariff policy will be reduced,” declared Donald Trump, who is to be inaugurated on January 20, on his Truth Social platform.
And added: “The Washington Post knows this is false. This is yet another example of ‘fake news’.”
The dollar reduced its losses in the wake of these statements. It collapsed following information from the American daily, based on “three sources close to the matter” according to which the increases in customs duties will only concern certain sensitive sectors.
If tariffs are not as high as expected, “the euro may not be as negatively affected” by Trump’s arrival, and American inflation will not accelerate as much, meaning that ” the Federal Reserve (Fed) might feel confident enough to cut interest rates more quickly,” said Susannah Streeter of Hargreaves Lansdown.
Furthermore, adds the analyst, interviewed by AFP, certain countries concerned have “acted in other areas to alleviate some of the concerns of the United States” in order to reduce the threat of a trade war.
The analyst cites Canada’s efforts to combat illegal immigration, Mexico’s efforts to combat drug trafficking and Italy’s move toward a trade deal with the American astronautics company SpaceX, led by Elon Musk. .
The euro experienced “a technical rebound against the dollar” from the start of the session, after falling last Thursday to its weakest level since November 2022, recalls John Plassard of Mirabaud.
Market players remain awaiting the monthly report from the ADP firm on job creation in December in the private sector in the United States, on the program for Wednesday, the same day as the report of the last monetary meeting of the December Fed.
The American employment report from the Department of Labor on job creations in December is expected on Friday.
In Canada, Prime Minister Justin Trudeau, under pressure within his liberal party, is due to deliver a speech on Monday. He has decided to leave his position as party leader, according to a government source at AFP.
