The dollar, which had been abandoned during the summer in favor of a return to risk on the stock market, has rapidly regained its role as a safe haven in recent days. On the contrary, the pound sterling is suffering from fears of a “hard Brexit”.

The return of concerns about the global economy and the correction in equity markets led to significant adjustments in foreign exchange markets at the start of the week.

The dollar, which had been abandoned during the summer in favor of a return to risk on the stock market, has rapidly regained its role as a safe haven in recent days. On Tuesday evening, the dollar index, which measures its evolution against 6 reference currencies, thus strengthened by 0.8% to 93.45 points, the highest in almost a month. The yen also gained ground, rising 0.2% to 106.03 Y/$ on Tuesday evening

Meanwhile, the pound sterling has borne the brunt of a renewed risk of a no-deal Brexit. After already losing nearly 1% on Monday, the pound fell another 1.35% to $1.2988 on Tuesday evening. Against the euro, the British currency fell by more than 1%, to 90.70 pence per euro. While a new round of negotiations with Brussels began on Tuesday, British Prime Minister Boris Johnson confirmed the press reports published on Monday, setting a new deadline of October 15... “If we can't reach an agreement by then, I don't see a free trade agreement between us,” and the UK will leave the EU at the end of December no matter what, he warned

According to the Financial Times, the director of legal services of the British government, Jonathan Jones, has resigned due to a disagreement with the government's now declared desire to review the part of the Brexit agreement dedicated to Ireland that was signed last year

For its part, the euro fell 0.3% to $1.1780 on Tuesday evening, in the run-up to the ECB's back-to-school meeting, scheduled for Thursday. While the latest macroeconomic indicators show that the post-COVID recovery is stalling in Europe, the central bank could be open to new support measures, even if no concrete action is expected by economists as early as this week