© Reuters. Market: the euro corrects to barely noon Friday
Friday afternoon on the foreign exchange market, the european single currency withdrew 0.28% against the american greenback, but is still earning 1% on the week slippery, 1,1420 dollar. She was also slightly lower against its other major counterparts to a few days of the Christmas holidays.
On the week, the euro remains driven by the anxiety caused by the last Fed meeting in 2018. Under its rate and continued to reduce its balance sheet while écrêtant its macroeconomic forecasts, the u.s. central bank has blown hot and cold. Of course, it is now ready to take on twice, and not three, rates by 2019. But it does not appear to consider that the ‘normalisation’ of its monetary policy poses a problem and does not care about especially of its consequences on the financial markets, while the stock markets go out of control. Risk pointed out by a number of stakeholders : that the Fed had committed an error of monetary policy.
‘Investors have been disappointed by the remarks of Jerome Powell, and they begin to worry about the risk of partial closure of the administrations in the us tonight at midnight’, comments on a study office in paris. ‘The negotiations between the Republicans and Democrats are broken : the meetings of work of yesterday have been cancelled and the budget in 2019 is virtually in the dead end ! A ‘shutdown’ over the Christmas holidays could disrupt, and weaken a little more, the american economy’, they add.
While the market activity is reduced, the analysts of Saxo Bank likely to be an initial rapid assessment of 2018 for the currency. ‘A good part of the year has been marked by the rapid rise in us interest rates and a strong dollar. As a result, the euro, the pound sterling, the canadian dollar and the australian dollar have all lost between 5 and 10% against the us dollar. It is even worse for the argentine peso and the Turkish lira which will drop 50% and 30%’, underline the experts.
EG
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