Washington (awp/afp) – The dollar gained ground on Friday, the lack of progress on the war in the Middle East after the meeting between presidents Donald Trump and Xi Jinping rekindling inflationary fears.
Around 6:20 p.m. GMT, the greenback gained 0.40% against the single European currency, to 1.1623 dollars per euro, and advanced 0.58% against the British currency, to 1.3323 dollars per pound.
“The US dollar ends the week on the rise” while “oil prices rise and global stock markets (…) fall”, summarize Scotiabank analysts.
The hope on Thursday was “that the Trump-Xi meeting could give rise to some positive headlines (including on Iran) which would have capped the greenback and boosted the feeling” of risk, but “for the moment, it is too little”, notes Francesco Pesole, of ING.
The American president simply mentioned encouraging words from Xi Jinping, assuring that China would not supply arms to Tehran and that it could contribute to the reopening of the Strait of Hormuz.
This status quo raises fears of a general acceleration in inflation.
“US data released this week clearly showed that price pressures persist,” note Scotiabank experts.
Producer-side inflation (PPI) jumped in April in the United States, to +6% year-on-year compared to +4.3% in March. The consumer price index (CPI) reached 3.8% year-on-year last month, the highest in almost three years.
“This leads the markets to anticipate a higher probability of a rate hike by the Fed (American central bank, editor’s note) this year,” observe Scotiabank analysts.
A monetary tightening would be likely to support the dollar.
At the same time, the pound continues to weaken with the intensification of maneuvers by potential rivals of Prime Minister Keir Starmer within the Labor Party.
The markets fear in particular “the prospect of a major left turn which would destroy growth and create an even larger deficit in British public finances”, summarizes Kathleen Brooks, analyst at XTB.
Already propelled by a global economic context made uncertain by the war, interest rates on British government bonds climbed on Friday.
The 10-year rate soared to 5.180%, a level it had not seen since the 2008 financial crisis, while the 30-year rate reached a peak since 1998, at 5.858%.
Cours de vendredi                Cours de jeudi
18h20 GMTÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 22h00 GMT
EUR/USDÂ Â 1,1623Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 1,1669
EUR/JPYÂ Â 184,55Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 184,80
EUR/CHFÂ Â 0,9146Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 0,9145
EUR/GBPÂ Â 0,8724Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 0,8707
USD/JPYÂ Â 158,73Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 158,37
USD/CHFÂ Â 0,7870Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 0,7837
GBP/USDÂ Â 1,3323Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 1,3403
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