Ahead of the ECB meeting the day after tomorrow, Thursday 22 April, the euro rose above the $ 1.20 threshold for the first time in almost seven weeks, benefiting from the weakness of the Dollar Index, which is hovering around 90.952 points, after the intraday low at 90.877 tested during Asian trading.
The single currency jumped up to $ 1.2068: at about 12.30 Italian time it slows down and rises by 0.12% to $ 1.2051; the dollar now rallies against the yen, advancing 0.22% to JPY 108.41, while it remains under pressure against the pound with a drop of 0.05% to $ 1.3979.
The euro rose 0.17% against the pound sterling to GBP 0.8621, while it advanced against the Swiss franc at CHF 1.1038. On the yen, the single currency posted a rise of 0.35% to JPY 130.67.
The dollar’s turnaround is explained by the easing of fears about US inflation, which led 10-year rates to drop to 1.5280% last week, after jumping to 1.7760% at the end of March. record in over a year.
Commerzbank strategist You-Na Park-Heger wrote in a note to clients that the dollar’s recent decline is due to reassurances from the Federal Reserve that it will not end its ultra-accommodative monetary policy anytime soon.
The improvement in the vaccine situation in Europe, on the other hand, is supporting the euro. However, the analyst said that the situation could also change rapidly.
“The economic recovery in the United States could raise expectations for a rise in inflation, sparking speculation about a rate hike. And the situation in the Eurozone in relation to the coronavirus pandemic could change again, given that uncertainty remains high “.