Currency: sideways trend for the euro and the dollar

(ABM FN-Dow Jones) After the sharp words of European Central Bank President Christine Lagarde and US President Joe Biden’s comprehensive plan, the euro struck a balance between $ 1.17 and $ 1.18.

“This is putting the euro against the dollar sideways at the moment,” currency trader Stéphane van der Meer of Ebury currency broker said Thursday against ABM Financial News. Van der Meer said: “We believe the euro will remain stuck between $ 1.17 and $ 1.18 for the time being, but this, by the end of the year, will push the improving US economy in the euro towards $ 1.15.”

Van der Meer estimates that the EUR itself responded positively to Lagarde’s strong words on Wednesday.

On Wednesday, Lagarde warned the market against betting on the European Central Bank despite “exceptional circumstances”. “They can test us as much as they want […] We currently have exceptional tools at our disposal […] You will use it when needed, “she warned in an interview with Bloomberg TV.

“And so she indicated that the European Central Bank is steady and that interest rates will remain really low for the time being. In today’s world, this is a positive sign for the economy of the monetary union and the euro. Biden’s plan is broad-based and good for the economy and the national currency, but still warrants the necessary discussion, especially if The financial implementation would have cost tax benefits, “said a Iberian currency trader on Thursday.

In Asia, the PMI for Japanese manufacturing in March appears to have gained more strength than previously thought, while the same indicator for China still indicates growth, but less than a month ago. Industrial purchases data for March also released today from the Eurozone and the United Kingdom provided a strong picture of activity.

German retail sales rose in March, but were below expectations.

Today, weekly US help requests are particularly in the spotlight, as the March US jobs report will be published on Friday. 675,000 requests expected last week.

In addition, two more US manufacturing PMIs will be released for March, followed by construction expenditures in February.

There is one appearance by a prominent critic on Thursday and it concerns Federal Reserve Chairman Robert Kaplan in Dallas.

The euro remained unchanged at $ 1.1739 on Thursday. The European currency rose 0.1 percent to 0.8517 pounds. The British pound was steadily trading at $ 1.3780 on Thursday. The dollar rose 0.3 percent to 6.5733 Chinese yuan. The dollar rose 0.1 percent today to trade at 110.8075 yen.

ABM Financial News; [email protected]; Revised text: +31 (0) 20 26 28999.