At around 9:00 p.m. the euro gained 0.65% against the greenback at 1.0985 dollars.
–
The dollar lost some ground Tuesday against major currencies, weakened by renewed optimism about the Covid-19 pandemic before a results season that promises to be delicate.
Around 7:00 p.m. GMT (9:00 p.m. in Paris), the euro gained 0.65% against the greenback, at 1.0985 dollars.
“Continued improvement in the mood for short-term global investors, combined with the Fed’s aggressive political response, is starting to weigh more heavily on the dollar,” said Lee Hardman, analyst for MUFG.
The massive injection of liquidity into the financial markets by the American Central Bank for several weeks, intended to limit the impact of the health crisis and the accompanying restrictive measures on the economy, tends to decrease the value of the green ticket.
The coronavirus pandemic continues to rage worldwide, with more than 120,000 deaths, but some of the most affected countries see a glimmer of hope: after Spain, where the economic “hibernation” has ended, France has set for May 11 is the start of deconfinement.
In the United States, the rate of contamination appears to be stabilizing and the governor of New York State, the epicenter of the epidemic in the country, estimated that “the worst (was) past”.
President Donald Trump now seems ready to go into conflict with American governors over who will decide on the deconfinement strategy.
But “aside from these bickering, the conversation has indeed turned to when and how the American economy will reopen, an evolution that suggests to brokers that we see the light at the end of the tunnel,” say analysts at Tempus. .
The US currency had recently taken advantage of its safe haven status, so any improvement on the front of the pandemic is likely to weaken it.
However, according to Lukman Otunuga, an analyst for FXTM, the decline in the dollar could also be explained by the fact that “investors are preparing for a difficult results season” in the United States.
Banks JPMorgan Chase and Wells Fargo have already reported a dip in profits due in part to the billions of dollars set aside in anticipation of a spike in default by customers affected by the Covid-19 pandemic.
According to FactSet, analysts expect on average a 10% drop in corporate profits from the S&P 500 in the first quarter, which started off rather well before the coronavirus paralyzed economic activity in March.
The British currency continued to rise against the dollar and the euro, further supported by the announcement of the discharge from hospital on Sunday of Prime Minister Boris Johnson.
–
