The euro rallied against the dollar on Tuesday, along with the yen and Swiss franc, with the greenback suffering from fears expressed by the boss of the United States Federal Reserve after the defeat. © detection of the Omicron variant. Around 10:10 GMT (11:10 in Paris), the European currency gained 0.65% against the dollar, to 1.1365 dollars to the euro. The single currency, battered against the greenback for six months, however, still has some way to go to regain its price at the beginning of November, above $ 1.15. The dollar also lost 0.61% against the Japanese currency, at 112.83 yen to the dollar, and 0.54% against the Swiss franc, at 91.82 Swiss cents to the dollar.
The new Omicron variant of Covid-19, which has prompted many countries to take travel restrictive measures, is raising fears for the global economic recovery. “This feeling was compounded by a statement from the President of the US Federal Reserve,” said Ricardo Evangelista, analyst at ActivTrades. In a speech that Jerome Powell will deliver on Tuesday to the Senate Banking Committee, but the text of which was released on Monday, he reads “downside risks to jobs and economic activity “posed by the Omicron variant, as well as” increased uncertainty about inflation “.
The boss of the American pharmaceutical company Moderna StÃ © phane Bancel, interviewed by the Financial Times, was not very reassuring in estimating that the existing vaccines against the Covid-19 would be less effective against the new variant, and that it will take several months to develop a new serum. Consequently, “some central banks could rethink the tightening of their monetary policy and postpone these measures”, estimates You-Na Park-Heger, of Commerzbank.
According to her, the “potential for disappointment” among forex traders mainly concerns “currencies which may have benefited from speculation on the rate hike in recent months, particularly the dollar” .
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