London (awp/afp) – The dollar regained strength on Friday, once again driven by the “Trump effect”, despite the Fed’s cut in American rates, which had been widely anticipated, while the yuan suffered from new economic announcements from China considered disappointing.
Around 11:15 a.m., the American currency rose by 0.27% against the euro, to $1.0776, and rose by 0.20% against the pound, to $1.2960.
The Federal Reserve (Fed) unsurprisingly made its second rate cut of the year on Thursday, placing them in the range of 4.50 to 4.75%, after a half-point cut in September — the first since March 2020.
The president of the American monetary institution, Jerome Powell, did not rule out a further rate reduction in December depending on economic conditions.
“In the short term, the elections will have no effect on our decisions,” he said. “We do not know what the timing and type of reforms will be” and “what the effects on the economy may be.”
Mr. Powell has ruled out resigning before the end of his term if the White House asks him to do so.
But according to Ipek Ozkardeskaya, analyst at Swissquote Bank, “the Fed has no choice but to dance to Trump’s rhythm, whether it likes it or not.”
The program of the new president of the United States is accompanied by the “risk of higher inflation”, which could force the Fed to slow down the pace and extent of rate cuts.
Markets will keep an eye on Friday on a consumer confidence index for November in the United States, published later in the session.
The yuan, traded in mainland China, remains gloomy, falling particularly 0.24% against the greenback, to 7.1602 yuan per dollar, with currency traders disappointed by new stimulus measures announced on Friday in the country. .
Beijing plans to raise the debt ceiling for local governments to support the economy ahead of a potential new trade war with Donald Trump.
This plan has slightly relieved the markets, but “once again, Chinese officials are failing to realize the hopes of recovery” raised in recent weeks, laments Patrick Munnelly, analyst at Tickmill.
Cours de vendredi Cours de jeudi 10H15 GMT 22H00 GMT EUR/USD 1,0776 1,0805 EUR/JPY 164,12 164,60 EUR/CHF 0,9392 0,9426 EUR/GBP 0,8314 0,8319 USD/JPY 152,30 152,34 USD/CHF 0,8716 0,8724 GBP/USD 1,2960 1,2987
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