London (awp/afp) – The dollar barely remained in the green on Tuesday, further supported by the prospects of smaller rate cuts from the Federal Reserve (Fed), in this period of limited trading before the Christmas holidays.
Around 10:25 a.m. GMT (11:25 a.m. in Paris), the greenback was just 0.09% higher than the European currency, at $1.0395, and was flat against the British currency, at $1.2535. .
“Little new information or data” is expected, which “should keep the focus on a firmer Fed” on its rates, underlines Ipek Ozkardeskaya of Swissquote Bank.
Last week, the American central bank, while reducing its interest rates by 0.25 percentage points, indicated that it now only plans two rate cuts next year, compared to four initially envisaged.
However, American inflation increased less than expected in November, if we stick to a recent PCE index, the Fed's favorite gauge, which leaves doubt about a future slowdown in the pace of its cuts.
Figures released Monday also showed that “orders for durable goods in the United States fell more than expected in November”, and that “consumer confidence fell unexpectedly in December” in the United States, underlines the analyst.
The euro remains particularly under pressure against the greenback. “The gloomy growth of the euro zone and the recent political setbacks”, in France in particular, are making investors consider “aid from the European Central Bank (ECB) next year”, in the form of rate cuts in order to support the economy, specifies Ms. Ozkardeskaya.
Announced on Monday, the ministers of the new French government take office on Tuesday on Christmas Eve, while the threat of censorship looms. The oppositions were very harsh with the new government, notably accusing Prime Minister François Bayrou of recycling personalities who had previously failed.
Tuesday lessons Monday lessons
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10H25 GMT 22H00 GMT
EUR/USD 1,0395 1,0405
EUR/JPY 163.25 163.54
EUR/CHF 0.9357 0.9367
EUR/GBP 0,8293 0,8300
USD/JPY 157,05 157,17
USD/CHF 0,9002 0,9002
GBP/USD 1,2535 1,2536
afp/al
