London (AWP/AFP) – After the shock of customs announcements, the dollar hesitates on Monday – in the red against the Euro and the Swiss franc, but up against the Yuan -, investors trying to assess the impact on growth and inflation, where bitcoin collapses.
While the global scholarships plunge, the greenback is torn because the customs duties announced on Wednesday could cause growth on growth, but also an acceleration of inflation in the United States.
After collapsing Thursday – losing up to 2.6% against the Euro – and having played Yoyo on Friday, the greenback dropped 0.13% against the euro, at 1.0970 dollars on Monday, around 1:15 p.m. GMT (3:15 p.m. in Paris).
Compared to the book, weighed down by strengthening expectations of British interest rate drops, it took 0.56%, at 1.2815 dollars.
Faced with currencies perceived as refuge values, the dollar bowed: it fell 0.73% compared to the Swiss currency, at 0.8545 Swiss franc for a dollar, and released 0.23% against Japanese currency, at 146.59 yen.
Donald Trump remained inflexible on Sunday, after his customs offensive launched on Wednesday, which provides for an additional 10% floor duty and increases for certain countries: 20% tax for the European Union, 31% for Switzerland, 24% for Japan.
Particularly affected, China is now targeted by 34% taxes, in addition to the surcharge it already suffered. Beijing replied by announcing 34% tax on American imports on Friday.
-Consequently, the dollar earned 0.36% against the Chinese Yuan offshore, at 7,3087 yuan for a dollar.
“The market already anticipates four to five interest rate drops in the Federal Reserve (FED) by the end of the year”, “reflecting the anticipation of a real massive negative economic shock”, even “a shift from the American economy to the recession following customs duties”, explains Ulrich Leuchtmann, of Commerzbank.
The consumer price index (ICC) for Mars, published Thursday, should also “show some of the first impacts of February customs duties”, set up on China, note Deutsche Bank analysts.
Considered a risky and volatile asset, Bitcoin is shunned by investors, and fell 8.39% on Friday at 9:00 p.m. GMT on Friday at 77,067.50 dollars, after falling below 75,000 dollars for the first time since the election of Donald Trump.
After reaching a record in the night from Wednesday to Thursday, gold reflected on its side from 0.37% to 3,026.92 dollars.
“While losses accumulate elsewhere, investors seem to sell profitable or liquid assets like gold” in order to recover liquidity, explains Daniela Sabin Hathorn, from Capital.com.
AFP/CW
