Around 9 p.m., the European currency lost 0.48% against the greenback, at 1.1143 dollars.
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The euro wiped out yesterday’s gains against the dollar on Tuesday, in a more optimistic market regarding the situation in the Middle East and after the publication of indicators deemed reassuring for the American economy.
Around 8:00 p.m. GMT (9:00 p.m. in Paris), the euro lost 0.48% against the greenback, at 1.1143 dollars.
The US currency also rose against the yen and the Swiss franc, which are generally considered to be safe havens.
The dollar index, which measures the value of the greenback against a basket of other currencies, appreciated 0.36%.
This rise in the dollar “illustrates the growing optimism that there will be no immediate military reaction from Iran”, which for the moment rules out “an escalation, and potentially a new war, in the Middle “Orient”, considers Ricardo Evangelista, analyst for ActivTrades.
Tensions between Iran and the United States, already strong before, have increased markedly since the assassination of Iranian General Qassem Soleimani on Friday during an American strike in Baghdad.
On the economic front, investors took note of the US service sector ISM index for December, which stood at 55%, better than analysts had expected.
The US trade deficit, for its part, settled in November to its lowest level since October 2016, as a result of a further decline in imports from China.
As for inflation in the euro area, it accelerated to 1.3% in December, as analysts expected.
Currency prices, however, reacted little to these publications, even though the euro temporarily increased its losses against the dollar after the ISM index.
The British currency also lost ground against the greenback, trading at 1.3121 pounds for the dollar.
“Brexit remains a thorn in the side of the pound. The developments of last year, including the overwhelming victory of Prime Minister Boris Johnson, who gave the Conservatives a strong majority in Parliament, did not dispel the specter of leaving the EU without an agreement, “said commented Joe Manimbo of Western Union.
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