(BFM Bourse) – Following Jerome Powell’s speech in Jackson Hole, the American currency accelerated its fall against the single currency of the euro zone.
After falling sharply for several weeks against the dollar, the euro regained ground on Friday, after a decline in US inflation and a speech by Federal Reserve (Fed) Chairman Jerome Powell at the meeting of central bankers in Jackson. Hole.
The European currency gained 0.6% against the dollar, at 1.0032 dollars around 4:50 p.m.
Earlier, Fed chief Jerome Powell said he wanted to “vigorously use his tools” to bring inflation back to his 2% target, while acknowledging that this fight would “suffer” households and businesses. Americans.
Slowdown in inflation
A determined message but which was not enough to revive the dollar, already in decline because inflation in the United States fell slightly in July by 0.1%, against an increase of 1% in June, according to the PCE index released Friday by the Commerce Department.
Over one year, prices also slowed their rise to 6.3% against 6.8% in June, according to this indicator favored by the American Central Bank, the Fed.
This figure “chills those who bet on the determination of the Fed” to raise its rates, comments Fiona Cincotta, analyst at City Index.
energy surge
Another indicator favorable to the American economy and which could justify a slower action by the Fed, the confidence of American consumers rose in August, helped by a slowdown in the pace of inflation, according to the final estimate published on Friday by the ‘University of Michigan.
The dollar therefore returns below the parity threshold with the euro, which had taken it to its highest level since the end of 2002 at 0.9901 dollars on Tuesday.
European currencies are also suffering from soaring energy prices, particularly strong on the Old Continent, which is more dependent than the United States on Russia’s participation in the market.
The pound lost 0.67% against the euro at 84.88 pence, while regulated energy prices will increase by 80% from October in the United Kingdom.
But the euro-pound pair remains relatively stable: the euro has gained 0.9% against the pound since the start of the year, while the two currencies have lost more than 11% against the dollar.
“The accumulation of risks in Europe is at the origin of the lack of volatility shown by the rate” euro-pound, explains Guillaume Dejean, analyst at Western Union.
(with AFP)
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