He dollar He touched on Thursday his lowest level in three and a half years compared to euro and The sterling poundin a context of massive foreign exchange before the possibility that the Federal Reserve (Fed) Cut the interest rates more than expected.
The American currency weakened 0.4% compared to the euro and 0.45% against the sterling pound, touching minimums since 2021, while losing 0.61% against the Japanese And it was at its lowest level in a decade compared to Swiss Franco at 0.80 per dollar.
The sterling pound rose Au $ s1,3728 after touching its highest level since October 2021 at the beginning of the session, and the euro did it au $ s1,1705, a peak since September of that same year, Reuters reported.
“This week has revolved around the Fed, to the possibility of relaxing its monetary policy and that we cut the rates more,” Eric Theoret said, Scotiabank’s currency barrel in Toronto.
On the other hand, analysts considered that the president of the Fed, Jerome Powellhe was more expansive in his testimony before the US Congress, stating that if it is not for inflation expectations as a result of the tariffs imposed by the Republican president Donald Trumpthe Central Bank would have continued with the cut of interest rates.
However, he stressed that the Fed must remain out of new policies to the perspectives of increasing pressures on prices in this boreal summer.
Donald Trump plans to appoint a president of the less strict Fed in 2026
President Donald Trump has in mind to appoint a new president of the Fed who is less strict in 2026, after his strong crosses with the current head, which he described as “beast” after pressing it successively for a decrease in interest rates.
Powell’s mandate ends in May, and the US president already has three or four people in mind to replace him, whose name could be announced in September or October.
For their part, analysts express that this person could operate as a Fed president in the shadow, undermining Powell’s influence. “From the market perspective, of course, that not only undermines the credibility and independence of the Fed, clearly, (but) it is also a risk to the prospects for US rates,” said Nick Rees, head of Macro Monex Europe Research.
Source: Ambito
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