London (awp/afp) – The dollar continued to fall on Tuesday, although Trump denied press reports that he ultimately intends to impose more limited customs duties than he had promised once in power.
Around 11:30 a.m., the American currency fell by 0.30% against the euro, to $1.0422, and slipped by 0.31% against the pound, to $1.2559.
Relying on “three sources familiar with the matter”, the Washington Post suggested Monday that President-elect Donald Trump could “restrict the increase in customs duties to essential imports”, which initially “allayed fears of trade restrictions widespread”, weighing heavily on the dollar, recalls John Plassard, analyst at Mirabaud.
The greenback has since slowed its decline because the billionaire rejected this information, ensuring that his tariff policy would not be reduced.
The euro reached its lowest levels in more than two years against the dollar last week.
Another factor supporting the European currency, inflation in the euro zone accelerated in December, to 2.4% over one year, compared to 2.2% in November, in line with analysts’ expectations, according to figures published on Tuesday.
“The persistence of services inflation in the euro area means that the European Central Bank (ECB) will probably continue to reduce interest rates slowly, even if the economic outlook remains poor”, concludes Jack Allen-Reynolds, analyst at Capital Economics.
A series of data on American employment will also punctuate the week, as well as the report of the last monetary meeting of the Fed in December on Wednesday.
For its part, the Canadian currency rose 0.19% against the greenback, to 1.4304 Canadian dollars per dollar, following the resignation of Prime Minister Justin Trudeau on Monday, after weeks of political crisis in the country. , recently aggravated by Donald Trump’s economic threats.
At his lowest in the polls, Justin Trudeau was under pressure from the opposition but also from many figures in his Liberal Party (center-left).
It appears that the market views the country’s Conservative Party “as more capable of solving Canada’s problems, such as low GDP per capita and increasing immigration,” surmises Commerzbank’s Michael Pfister.
The analyst, however, remains “skeptical about the ability of the Canadian dollar to maintain its strength”, in a context of “increased uncertainties” before the legislative elections scheduled for October at the latest.
Cours de mardi Cours de lundi 10H30 GMT 22H00 GMT EUR/USD 1,0422 1,0390 EUR/JPY 164,37 163,77 EUR/CHF 0,9431 0,9399 EUR/GBP 0,8298 0,8299 USD/JPY 157,71 157,62 USD/CHF 0,9049 0,9046 GBP/USD 1,2559 1,2520
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