Around 12:10 pm, the dollar nibbles 0.08% at the euro, to 1.1599 dollars, and grabbed barely 0.03% against the British currency, to 1.3610 dollars.
The dollar is stable on Wednesday: reassured by the truce between Iran and Israel, investors are waiting for a speech by the Governor of the American Central Bank (FED), which could specify its intentions on possible future rate reductions.
With the decrease in fears about oil supply and the ceasefire between Iran and Israel imposed by Donald Trump on Tuesday, “the geopolitical risk premium has largely dissipated for the dollar”, considered as a refuge value, sums up Stephen Innes, of SPI.
“Attention is again focused on American macroeconomics,” according to the analyst.
Around 10:10 a.m. GMT (12:10 p.m. in Paris), the dollar was nibbled 0.08% at the euro, to 1.1599 dollars, and barely grappled 0.03% against the British currency, to 1.3610 dollar.
During his second day of hearing by American parliamentarians on Wednesday, the boss of the Fed Jerome Powell will have the opportunity to clarify his comments from the day before, which had sink the dollar and carried the euro and the book to peaks since 2021 and 2022, respectively, facing the greenback.
Powell assured Tuesday that he saw “no emergency” to lower the rates of the Fed, after two other officials of the monetary institution recently was open to a cup in July.
But by hearing it say that “many ways were possible” the market considered that a drop in rates remained possible, notes Jane Foley, analyst at Rabobank, interviewed by AFP.
If Jerome Powell rear back to this apparent opening signal on Wednesday, this could benefit the dollar, notes Mr. Innes.
“A drop in rates in July would be precipitated, because commercial uncertainties will not be lifted by then,” said Ipek Ozkardeskaya, of Swissquote Bank.
She notes that “the customs duties that will come into force in July – or August – will not have repercussions on consumer prices than in the fall as soon as possible”.
Figures on the American American real estate market are also expected later in the session.
Bover also awaits in the week the last estimate of the United States GDP in the first quarter, the PCE inflation index for May, and interventions of other Fed officials.
