The European currency stabilized on Monday against the dollar at the end of the day, in a market awaiting an intervention by the President of the American Central Bank Jerome Powell later in the week.

Around 7:00 p.m. GMT (9:00 p.m. in Paris), the euro lost 0.04% against the greenback, at 1.1792 dollars.

On Friday, the single currency had dropped 0.60% against the American currency, undermined by worse than expected indicators in the euro zone where the threat of a second wave of Covid-19 still hangs over economic recovery.

The euro regained some ground against the greenback on Monday before falling back little by little.

"The rebound of the dollar after crossing a technical threshold was quite impressive last week and the rebound on Monday is of the same ilk," notes Craig Erlam of Oanda.

The dollar index, which calculates the value of the greenback against a basket of major currencies, “still looked vulnerable a few days ago but is now approaching $94, a key resistance level,” adds the expert.

The greenback in fact fell sharply against the main currencies during the month of July, losing in the eyes of certain forex traders its status as a safe haven currency, before stabilizing in August.

Investors had little information to sink their teeth into on Monday, ahead of a speech by US Federal Reserve (Fed) Chairman Jerome Powell on Thursday at the annual Jackson Hole symposium, a virtual-only meeting this year, due to the coronavirus.

"The Fed could use the framework of the symposium to signal possible upcoming monetary policy changes such as the introduction of a limit on Treasury yields or the abandonment of tight control of inflation", comments Joe Manimbo by Western Manimbo. Such decisions would tend to weigh on the dollar.

Monday class Friday class

                   7:00 p.m. GMT 9:00 p.m. GMT

EUR/USD 1.1792 1.1797

EUR/JPY 124.95 124.81

EUR/CHF 1.0747 1.0754

EUR/GBP 0.9030 0.9012

USD/JPY 105.96 105.80

USD/CHF 0.9114 0.9116

GBP/USD 1.3058 1.3090