The euro fell sharply on Monday against a dollar strengthened by risk aversion and which led to the fall in the price of precious metals.

Around 14:45 GMT (16:45 in Paris), the euro lost 0.85% against the greenback, at 1.1740 dollar, after starting the week higher.

"The decrease in risk appetite and the decline in global stock markets at the beginning of the week are pushing the euro down against the dollar," Viraj Patel, an analyst for Arkera, told AFP earlier, while the single currency declined sharply at the beginning of the European session.

The dollar is generally considered a safe haven and therefore tends to appreciate when political or economic uncertainty predominates.

This strengthening of the greenback led to a fall in precious metals, and in particular silver which lost 8.60%, after dropping more than 10%, returning to its level of mid-August. Gold, on the other hand, lost 2.87%, to $1,894.90 an ounce. Platinum, and palladium to a lesser extent, also fell.

Since these commodities are denominated in dollars, a rise in the dollar makes them more expensive for investors using other currencies.

On Monday, investors will be able to follow three speeches by officials of the US Federal Reserve, including one by Jerome Powell, the president of the institution, who will also be heard by parliamentarians on Tuesday and Wednesday.

Meanwhile, with the death on Friday of progressive Supreme Court Justice Ruth Bader Ginsburg, the U.S. presidential election has taken a new turn, and "tensions are expected to escalate," noted Derek Halpenny, an analyst for MUFG.

Donald Trump has announced his intention to appoint a replacement before the presidential election in November, to which the Democratic candidate Joe Biden responded by accusing the president of exercising power in a "brutal" way.

If this event does not seem to have had a direct effect on the foreign exchange market, the US presidential election is an important factor and any change in dynamics is particularly scrutinized by the market.

Monday Classes Friday Classes

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14H45 GMT 21H00 GMT

EUR/USD 1.1740 1.1840

EUR/JPY 122.75 123.81

EUR/CHF 1.0759 1.0793

EUR/GBP 0.9177 0.9166

USD/JPY 104.46 104.57

USD/CHF 0.9159 0.9116

GBP/USD 1.2799 1.2917