The dollar continued its slide Tuesday and conceded up to 1% against the British currency and 0.7% against the European currency, as investors turned away from the greenback in the face of the gloomy economic outlook in the United States.

By 14:50 GMT (16:50 in Paris), the pound sterling was worth 1.3232 dollars, shortly after touching 1.3241 dollars, up more than 1%.

The euro, meanwhile, was quoted at $1.1936, shortly after hitting $1.1966, the highest since May 2018.

The rather sudden jump of the pound and the euro at the beginning of the American session, "is partly technical," explained Fawad Razaqzada, an analyst at ThinkMarkets to AFP, referring to a move "that is part of the downward trend weighing on the dollar."

The "dollar index", which measures the performance of the greenback against a basket of currencies, has lost around 5% since the beginning of July, and more than double since its annual high reached on March 20.

It is at its lowest level in more than two years.

"Investors expect the U.S. Federal Reserve (whose minutes of the latest meeting will be released later this week) will maintain its extremely accommodative policy for a long time as the persistence of the Covid-19 could continue to weigh on the economic recovery" in the United States, added Mr. Razaqzada. Razaqzada added.

"There are signs that the recovery of the world's largest economy has already slowed," he continued, citing the index of manufacturing activity in the New York area.

This indicator released Monday has certainly progressed in July, but much less quickly than the pace of June and that anticipated, what to further encourage traders to shed their greenbacks.

For Avtar Sandu, analyst at Phillip Futures, "the concern over the postponement of talks on the trade agreement between the United States and China", initially scheduled for last Saturday, adds to the bearish pressure on the dollar.

The two sides were expected to review the trade agreement signed in January and no date has been given for a new meeting.

Tuesday's rates Monday's rates 14:50 GMT 21:00 GMT EUR/USD 1.1936 1.1870 EUR/JPY 125.82 125.83 EUR/CHF 1.0776 1.0762 EUR/GBP 0.9018 0.9059 USD/JPY 105.41 106.00 USD/CHF 0.9029 0.9066 GBP/USD 1.3232 1.3103