Around 11:45 a.m., the euro gained 0.32% against the greenback, to 1.0342 dollars, and the British currency regained 0.41%, to 1.2475 dollars.
The euro and the pound made up for part of their losses from last week on Monday, before the publication in the coming days of a series of indicators, notably on inflation in the euro zone and American employment.
Around 11:45 a.m., the euro gained 0.32% against the greenback, to 1.0342 dollars, and the British currency regained 0.41%, to 1.2475 dollars.
The euro “is experiencing a technical rebound against the dollar”, after falling last Thursday to its weakest level since November 2022, “due to concerns about Europe’s economic outlook and optimism surrounding the economy American,” summarizes John Plassard, from Mirabaud.
The analyst underlines that “the markets are preparing for the return of Donald Trump to the White House”, the American president-elect considering strengthening customs duties on European imports to the United States.
His policies are likely to boost US inflation, which could slow down the process of monetary easing by the Federal Reserve (Fed).
According to Stephen Innes, analyst at SPI AM, “as Donald Trump’s inauguration day approaches” on January 20, “the anticipation of customs tariffs could exert downward pressure on the euro and the yuan” .
A German regional inflation index, from the Hesse region, came out stronger than expected on Monday for the month of December, as investors await German national inflation later in the session.
The first estimate of inflation in the euro zone in December is expected on Tuesday.
Market players remain awaiting ADP’s monthly report on job creation in the private sector in the United States for December on Wednesday’s program, the same day as the report of the last monetary meeting of the Fed in December.
The US employment report from the Department of Labor on job creations in December, which includes unemployment figures, is expected on Friday.
The market is also monitoring the situation in Canada where, under pressure within his liberal party, Canadian Prime Minister Justin Trudeau could resign on Monday, according to media reports.
Mr. Trudeau has been weakened politically since the surprise resignation of Deputy Prime Minister Chrystia Freeland who disagreed with his way of managing the looming economic war with the United States.
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