London (awp/afp) – The re-election of Donald Trump continues to send the dollar soaring on Thursday, with investors expecting inflationary policies from him, while bitcoin benefits from the prospect of relaxed regulations.
Around 10:45 a.m. GMT (11:45 a.m. in Paris), the European currency fell 0.43% against the greenback, to $1.0518, after touching $1.0502, a weakness not seen since mid-October 2023.
The pound for its part lost 0.51% to the American currency, at 1.2642 dollars, shortly after falling to 1.2630, a level not seen since the beginning of July.
The greenback is also crushing the Indian currency, which fell to its historic low on Thursday, at 84.4162 rupees per dollar.
“It is possible that Trump's announcements that he will choose hard-liners for many positions will generate additional euphoria” on the dollar, said Michael Pfister, analyst at Commerzbank.
If his administration implements the president-elect's plans, which involve widening the budget deficit, inflation should accelerate in the country, possibly slowing down the rate reduction process initiated by the Federal Reserve (Fed).
On Wednesday, the US consumer price index CPI had a negligible impact on the market, as it showed that inflation had as expected rebounded in October, to 2.6% year-on-year, from 2. 4% in September.
The producer price index (PPI) in October in the United States is expected to show a slight rebound year-on-year on Thursday.
This index “contains elements which feed into the PCE inflation index”, favored by the American central bank to gauge the evolution of prices in the United States, comments Ipek Ozkardeskaya, of Swissquote Bank.
The analyst therefore questions the relevance of the quarter of a percentage point rate cut widely expected by the markets in December across the Atlantic.
Central bankers Jerome Powell, head of the Fed, and Andrew Bailey, governor of the Bank of England, will speak on Thursday.
Also on today's agenda is the publication of the minutes of the ECB's October monetary policy meeting.
After climbing to an all-time high of $93,462.18 the day before, bitcoin also remained in the green on Thursday, up 2.92% to $91,228.88.
The digital currency is riding the wave of post-election enthusiasm, the return of Donald Trump to the White House, which could put in place legislation or policies more favorable to cryptocurrencies.
However, the price of bitcoin is likely to undergo a “bearish correction,” warns Alexander Londoño, an analyst at ActivTrades, once emotions subside, “when the hype subsides and markets begin to question the sustainability” of this runaway.
Thursday lessons Wednesday lessons
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10:45 GMT 10:00 PM GMT
EUR/USD 1,0518 1,0564
EUR/JPY 164.21 164.23
EUR/CHF 0.9358 0.9356
EUR/GBP 0,8319 0,8312
USD/JPY 156,13 155,46
USD/CHF 0,8897 0,8856
GBP/USD 1,2642 1,2708
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