New York (awp / afp) – The euro appreciated slightly against the dollar on Wednesday late in the session, buoyed by a renewed appetite for risk in a slightly more optimistic market on Sino-US trade talks. the pound sterling was highly volatile.
Around 19H00 GMT (21H00 in Paris), the European currency took 0.16% against the greenback, to 1.0975 dollar.
In the absence of a major indicator, "the appetite for risk has increased with reports that China is still ready for a partial agreement on agriculture," said Boris Schlossberg of BK Asset Management.
According to Bloomberg, Beijing remains open to a partial agreement if US President Donald Trump waives the additional tariffs he has threatened to implement by the end of the year. This allayed fears of a further escalation of trade sanctions that would further dampen global growth.
The publication of the minutes of the last meeting of the US central bank, expected by the markets, finally had little effect on the greenback.
According to this document, Fed members have been "more worried" about trade tensions and geopolitical risks, with some fearing the likelihood of a "recession" in the medium term.
The pound sterling, for its part, was down 0.08% against the dollar, at 1.2209 dollars, and lost 0.26% against the euro, at 89.89 pence for one euro.
It had temporarily jumped during the session "after information that the EU is ready to make a major concession on a Brexit deal," said David Cheetham, an analyst for XTB.
According to the British daily The Times, citing diplomatic sources close to the negotiations, European governments would be prepared to grant Northern Ireland the unilateral revocation of the withdrawal treaty after a while.
The British currency, however, quickly erased its gains. The day before, the pound had already fallen sharply in the face of persistent differences between the Europeans and the British.
The prospect of the United Kingdom leaving the European Union without agreement is a nightmare scenario for the business community and the pound tends to depreciate as soon as the likelihood of such an assumption increases.
"While everyone expects a clear focus on Brexit, British data expected Thursday on growth, manufacturing activity and trade will provide clues to the likelihood of Britain plunging into a recession likely to weigh even more about the book, "said Joe Manimbo of Western Union.
Wednesday class Tuesday class 19H00 GMT 21H00 GMT EUR / USD 1.0975 1.0957 EUR / JPY 118.00 117.33 EUR / CHF 1.0929 1.0877 EUR / GBP 0.8989 0.8967 USD / JPY 107.52 107.09 USD / CHF 0.9958 0.9927 GBP / USD 1.2209 1.2219
afp / rp