The dollar stable against the euro, the pound rises

The dollar was close to balance on Thursday against the euro after US unemployment figures, while the pound rose against major currencies, helped by less pessimistic Bank of England forecasts.

Around 7:00 p.m. GMT (9:00 p.m. in Paris), the euro grabbed 0.08% against the greenback, at 1.1872 dollars. Earlier in the day, the single European currency had reached its highest since May 2018 against the greenback, at 1.1916 dollars.

The dollar index, which measures the performance of the dollar against a basket of currencies, was also close to equilibrium after falling overnight from Wednesday to Thursday to a new low in more than two years.

According to the Labor Department, 1.19 million people were newly registered as unemployed last week in the United States, down from 1.43 million the previous week and better than analysts' expectations.

Investors are now awaiting the Labor Department's July US jobs and unemployment rate report, which will be released on Friday.

“Positive data could help relieve pressure on the dollar,” anticipates Joe Manimbo of Western Union.

“But if the data were to heighten concerns about the fragility of the US economy, it could imply further decline for the US currency,” he adds.

The parliamentary negotiations in the United States around the second part of the recovery plan also caught the attention of traders.

Republicans and Democrats are struggling to agree on new aid for millions of unemployed Americans as well as businesses, communities and households hit hard by the impact of the pandemic.

For its part, the pound gained 0.26% against the greenback, to 1.3148 dollars. Against the euro, it appreciated by 0.19% to 90.29 pence per euro.

The Bank of England on Thursday unveiled economic forecasts less pessimistic than in May for 2020 and opted for the status quo by conditioning any monetary tightening on "clear evidence" of a sustainable recovery.

The monetary institute now expects a recession of 9.5% this year, against 14% in May, at the height of the Covid-19 pandemic in Europe, enough to comfort the pound sterling.

                      Thursday class Wednesday class
                          7:00 p.m. GMT 9:00 p.m. GMT

EUR/USD 1.1872 1.1863

EUR/JPY 125.37 125.28

EUR/CHF 1.0808 1.0777

EUR/GBP 0.9029 0.9047

USD/JPY 105.60 105.60

USD/CHF 0.9104 0.9085

GBP/USD 1.3148 1.3114