The dollar suspended by the Federal Reserve’s decision

The dollar suspended by the Federal Reserve’s decision
The dollar suspended by the Federal Reserve’s decision

London (awp/afp) – The dollar was sluggish on Wednesday ahead of the Federal Reserve’s (Fed) monetary policy decision, in a market with low volumes due to a public holiday for many European and Asian markets.

Around 09:40 GMT (11:40 a.m. in Paris), the greenback fell slightly against the euro, which gained 0.05% to 1.0672 dollars, and remained almost stable against the pound, which crumbled by 0.01%. at $1.2490.

With almost all European markets closed for Labor Day, as well as many Asian markets, investors remained cautious ahead of the Fed’s Monetary Policy Committee (FOMC) announcement later in the session on Wednesday.

The day before, the greenback had been confronted with mixed economic indicators.

The employment cost index, which measures changes in prices paid by businesses and the government for civilian labor, rose faster than expected in the first quarter, at 1.2%.

“The acceleration” of this index “supports the idea that the final stage in the fall in inflation will be slow”, which could delay the first reduction in Fed rates until September, indicates Neil Wilson, analyst at Finalto.

However, consumer confidence in April collapsed to 97 points instead of the expected 103.5 points, a 17-month low.

Bitcoin fell 4.32% to $57,282, after hitting its lowest since the end of February earlier on Wednesday, at $56,527.

The Fed’s tough rate expectations are “amplifying sales” of bitcoin, with investors “preparing for a firmer dollar” and therefore better returns, which makes investing in cryptocurrency less expensive in comparison. attractive, says James Harte, of Tickmill.

He adds that “bitcoin is also suffering from the less than successful beginnings” of index funds (ETFs) indexed to bitcoin in Hong Kong, an investment product allowing investors to bet on the developments of this cryptocurrency without owning it directly.

        Cours de mercredi Cours de mardi          09H40 GMT               21H00 GMT  EUR/USD 1,0672                  1,0666  EUR/JPY 168,52                  168,31  EUR/CHF 0,9825                  0,9806  EUR/GBP 0,8543                  0,8538  USD/JPY 157,92                  157,80  USD/CHF 0,9207                  0,9194  GBP/USD 1,2490                  1,2492  

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