London (awp/afp) – The dollar stumbles on Thursday, marking a partial market correction following a spectacular rise in the greenback of nearly 2% on Wednesday with the election of Donald Trump as president of the United States.
Around 10:40 a.m. GMT (11:40 a.m. in Paris), the American currency lost 0.28% against the euro, to $1.0760.
The greenback also fell by 0.23% against the pound, to 1.2910 dollars, the British currency remaining practically stable against the euro, before a monetary policy decision later Thursday from the Bank of England ( BoE), for which currency traders expect a 0.25% drop in interest rates.
Regarding the decision also expected on Thursday from the American central bank (Fed) on its rates, Antje Praefcke, analyst at Commerzbank, estimated that the result of the American presidential election “will not change anything in the monetary policy of the Fed in the short term “.
According to this analyst, the Fed’s mission to combat American inflation is almost accomplished, which makes the labor market “the center of attention” in the United States.
“In this regard, the Fed can further lower its key rate in order to become less restrictive” and help revive the economy, he explained.
The market thus partially corrects Thursday the sharp rise in the dollar the day before. The greenback had been pushed by the fact that Donald Trump’s program includes inflationary policies, which fuels expectations of higher rates in the longer term in the United States.
In addition, investors now anticipate a “rapid reaction from the European Central Bank (ECB)” to counter the fall of the euro and deal with new customs tariffs that the new American administration could put in place, underlined Ipek Ozkardeskaya, analyst at Swissquote.
As for Scandinavian countries, the Norwegian and Swedish crowns climbed on Thursday after announcements from local central banks.
The Swedish crown gained 0.49%, to $0.09255, and the Norwegian crown gained 1.92%, to $0.09210.
The Riskbank, the Swedish central bank, lowered its key rate by 0.5% to 2.25% on Thursday. The currency is rising as the rate cut was expected by the market and data on Swedish inflation in October showed a stronger rise than expected.
The Norwegian central bank, for its part, kept its key rate unchanged on Thursday, at 4.50%, at the highest level in 16 years, and reiterated that it would keep it that way until the end of the year.
Thursday lessons Wednesday lessons
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10H40 GMT 22H00 GMT
EUR/USD 1,0760 1,0729
EUR/JPY 165.67 165.91
EUR/CHF 0.9428 0.9405
EUR/GBP 0,8335 0,8331
USD/JPY 153,97 154,63
USD/CHF 0,8763 0,8766
GBP/USD 1,2910 1,2979
afp/ib
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