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Currencies: low volatility in the dollar, the Pound continues to rise

16/09/2020
Source : zonebourse.com
Categories: Economy/Forex

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The Euro is consolidating marginally against the Dollar (-0.1% towards 1.1835) and it is once again the Pound Sterling which stands out.
It continued the rebound that began on Monday (after almost -3% the previous week): it gained 0.75% against the dollar and 0.85% against the euro, towards 0.91).
Boris Johnson seems to be watering down his wine with the EU: he says he is confident in the possibility of reaching a draft post-Brexit agreement by October 15.

Note also that consumer prices in the United Kingdom rose at an annual rate of 0.2% in August (0.00% expected), down 0.8 points from the previous month, according to the 'ONS.

The Dollar has been showing little volatility for 48 hours, a little weaker against the Yen (-0.5%) while Japan has a new Prime Minister who follows in the footsteps of Shinzo Abe.

Currency traders seem to expect nothing from the greenback in relation to the Fed's FOMC: it has already announced its monetary scenario for 2024: no rate hikes (the only possible debate therefore becomes: will it go negative?).
The ultimate suspense lies in the degree of tolerance for inflation: how much could the rise in prices exceed 2% before the FED reacts (and if it makes an 'average', over how many quarters? out of 2 , 4 or 6?).

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