London (awp/afp) – The dollar rose again on Monday after its fall on Friday linked to Donald Trump‘s customs threats against China, which have since moderated, but investors continue to turn to gold, a safe haven, which reached a new record.
“Don’t worry about China, everything will be fine! The highly respected President Xi just had a bad time. He doesn’t want depression for his country, and neither do I,” the American president said Sunday on Truth Social.
“Trump indicated that he was open to a discussion with China, which boosted the morale of the markets, destabilized by a rapid escalation of trade tensions,” summarizes Patrick Munnelly, analyst at Tickmill.
Around 09:40 GMT (11:40 a.m. in Paris), the greenback rose 0.22% against the single European currency, to 1.1594 dollars per euro, and rose 0.17% against the British pound, to 1.3337 dollars.
It also climbed 0.65% against the Japanese currency, to 152.18 yen per dollar.
Some analysts see this as a new example of the “TACO” phenomenon (“Trump always chickens out”).
On Friday, the Republican estimated that Beijing was “becoming very hostile”, before threatening to impose 100% customs duties on Chinese products, which would be added to the 30% already applied since last May.
This announcement had “precipitated” the sale of dollars, illustrating the fact “that traders see the United States, and not China, as the biggest loser in a new escalation” of the trade conflict, underlines Stephen Innes, of SPI AM.
“That said”, believes the analyst, the rebound of the dollar can also be explained by “the weakness” of other economies: “the euro remains limited by political fragility in France, while the yen finds little refuge in the post-election fog in Japan”.
In France, Sébastien Lecornu’s second government takes office on Monday, with the aim of avoiding possible censorship this week and submitting a draft budget by the end of the year.
In this uncertain climate, gold and silver, considered safer assets, both hit new records on Monday.
After reaching a historic level at $4,079.89 per ounce on Monday, the yellow metal rose 1.37% to $4,072.90 per ounce around 09:40 GMT.
Silver also soared to an all-time high on Monday, at $51.7148 per ounce.
Cours de lundi Cours de vendredi
09H40 GMT 21H00 GMT
EUR/USD 1,1594 1,1619
EUR/JPY 176,43 175,79
EUR/CHF 0,9306 0,9289
EUR/GBP 0,8692 0,8698
USD/JPY 152,18 151,19
USD/CHF 0,8027 0,7996
GBP/USD 1,3337 1,3360
afp/jh
