Around 4 p.m., the euro lost 0.87% against the greenback, at 1.1773 dollars. As of Thursday, it reached $ 1.1916, the highest since May 2018.
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The euro, already down against the dollar at the start of the session, sharply increased its losses on Friday after the publication of data on US employment seen positively by the markets.
Around 2:00 p.m. GMT (4:00 p.m. CET), the euro lost 0.87% against the greenback, at $ 1.1773. As of Thursday, it reached $ 1.1916, the highest since May 2018.
The market took note Friday of the monthly report on employment which reported 1.8 million jobs created in July in the United States, a figure much lower than that of June.
Still, analysts polled by Bloomberg expected just under 1.5 million.
“Many investors expected a negative release, but that pessimism will just shift to next month when the report includes most of the slowdown that has resulted from the resurgence of the virus in states experiencing a second wave,” commented Edward Moya, analyst for Oanda.
With a multiplication of cases of Covid-19, many states such as California, Texas, Florida, have indeed had to close restaurants and stores that had reopened a few weeks earlier.
However, according to Thu Lan Nguyen of Commerzbank, who spoke earlier today, “even a good report should probably not support the dollar over the long term.”
For her, the weakness of the dollar can in fact be explained above all by the monetary policy of the American Federal Reserve, which has become with the Covid-19 crisis almost as accommodating as that of the European Central Bank, which justifies the rebalancing of the two currencies.
The euro-dollar pair is indeed moving at levels comparable to those of a little over two years ago, when the Fed initiated a cycle of monetary tightening, completely canceled since March.
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