The dollar recovers after another tightening signal from the Fed


New York (awp / dpa) – The US dollar gained ground against the euro after the publication of the minutes of the last meeting of the US Central Bank (Fed), which point to an anticipated normalization of the monetary policy of the States- United.

After slipping to $ 1.1346 per euro, the greenback rose to $ 1.1303 against the single currency, around 8:20 p.m. GMT. However, it remained down 0.15% from the previous day.

Minutes from the last Fed Monetary Policy Committee meeting, Dec. 14-15, showed its members envisioned normalization sooner than expected.

“Participants generally noted that given their outlook for the economy, labor market and inflation, it might become justified to raise the (key) rate earlier (than expected) or at a faster rate. more sustained than what they initially expected, “said the report, published Wednesday.

Seemingly uninterested in the effects of the Omicron variant of the coronavirus, central bankers have decided to focus on inflation, which threatens to take hold in the US economy.

“It looks like they are set to recover for the first time in March, which is a real change from (their position) just six months ago,” said Juan Manuel Herrera, currency specialist at Scotiabank.

Three-quarters of stakeholders now expect a rate hike in March, while only a quarter predicted this scenario a month ago, according to the model of the CME Exchange.

For Juan Manuel Herrera, forex traders have also reacted to the possibility that the Fed will begin to reduce its balance sheet soon after the first rate hike.

The analyst recalls that during the last similar cycle, the Fed allowed almost two years to elapse between its first rate hike and the start of its balance sheet reduction (December 2015 to September 2017).

Already considerable, the amount of financial assets held by the American Central Bank has more than doubled since the start of the pandemic, reaching $ 8,757 billion at the end of December.

For Juan Manuel Herrera, as operators return from vacation, “the euro will resume the descent that we saw before the consolidation phase” that the single currency has known for a little over a month.

        Cours de mercredi cours de mardi

        20H20 GMT                   22H00 GMT

EUR/USD 1,1303                      1,1287

EUR/JPY 131,29                      131,10

EUR/CHF 1,0377                      1,0340

EUR/GBP 0,8341                      0,8342

USD/JPY 116,15                      116,16

USD/CHF 0,9181                      0,9161

GBP/USD 1,3551                      1,3530

afp / rp



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