Around 11:25 am, the greenback is recovering from 0.37% compared to the euro, to 1.1598 dollars, and returned to 0.14% against the pound, to 1.3402 dollars, returning to its previous levels the brief panic linked to the Fed.
The dollar returned to the field on Thursday he had briefly lost the day before, carried by the fact that Donald Trump finally minimized the possibility that he could dismiss the president of the American Federal Reserve (Fed), Jerome Powell.
According to the White House, the American president met on Tuesday evening Republican elected officials in order to discuss with them the subject, a source specifying to AFP that the president was thinking about doing so, even if it was not imminent.
This possibility caused a sudden and brutal fall in the dollar, the market believing that the possible “replacement for Powell would aggressively reduce rates to please Trump,” said Ipek Ozkardeskaya, analyst at Swissquote Bank.
The head of state then blew hot and cold on Wednesday, first ensuring reflecting on fire Mr. Powell, before considering the possibility as “very improbable”.
“After an hour of frenzy”, “the markets immediately operated on a reversal,” notes Stephen Innes, of SPI AM.
Around 9:25 am GMT (11:25 am in Paris), the greenback was straightening up 0.37% compared to the euro, to 1.1598 dollars, and returned to 0.14% against the book, to 1.3402 dollars, returning to its previous levels the brief panic linked to the Fed.
“After this fright, attention has refocused on the macroeconomic”: “Inflation is not yet controlled enough to justify a real turn” towards reductions in interest rates, underlines Mr. Innes.
American inflation in June published on Tuesday has proved stronger than expedient by analysts, at 2.7% over a year, compared to 2.4% in May.
Investors have dismissed the possibility that the Fed lowers its rates later this month, but still hesitating on the plausibility of a cup in September.
Retail sales for June in the United States will therefore be particularly scrutinized later in the session.
Finally, commercial negotiations are continuing, with the arrival in Washington Thursday of the head negotiator of the European Union, Maros Sefcovic, responsible for tearing up a trade agreement with the United States on behalf of the 27 member states.