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Currency: The strong dollar against the euro, at its highest in more than four months

11/08/2021
Categories: Economy/Forex

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The dollar at its highest for more than four months against the euro. The American currency reached a peak on Tuesday August 10, galvanized by American employment data capable of leading the American Federal Reserve (Fed) to tighten its monetary policy.

Shortly after reaching 1.1726 USD for one euro, a first since April 1, the greenback gained 0.05% against the European currency around 09:10 GMT (11:10 am in Paris), to 1.1730 USD. A monthly American survey (JOLTs report) came to support them on Monday August 9, showing strong demand on the labor market with a jump of 590,000 jobs to be filled, for a total of 10.7 million in June, a record. These encouraging signs for the labor market go hand in hand with the anticipation that the US central bank could announce in September how it will reduce its monetary support. Traders are now awaiting US inflation data for July, due Wednesday August 11 for consumer prices (CPI) and Thursday August 12 for wholesale prices. Imperturbable, the pound sterling continued to advance on Tuesday August 10 against the main currencies, including the single European currency, returning to a level more seen since the end of February 2020 against the latter, again echoing the prospect of a " slight tightening" of monetary policy which will be discussed on Thursday August 12 by the Bank of England (BoE). The British currency thus gained 0.18% against the euro, to 84.61 pence.

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