The euro, which began Tuesday higher against the dollar, reversed the trend during the US session weakening a little against the greenback, as the US Central Bank (Fed) began a monetary meeting.

Around 7:10 p.m. GMT (9:10 p.m. in Paris), the euro conceded 0.15% against the greenback, at $ 1.1848.

This slight strengthening of the dollar comes pending the outcome of the meeting and press conference by Fed Chairman Jerome Powell at 6.30 p.m. GMT on Wednesday.

For Zachary Griffiths, of Wells Fargo Securities, “we doubt that the Fed will give more precision on its future policy” since it has already modified its target of 2% inflation to tolerate more flexibility and keep rates low. long term.

Investors will carefully consider the outlook for interest rates through 2023, which is expected to be released by the Fed for the first time.

“We expect a majority (of members of the Monetary Committee) to indicate that monetary policy will not move until the end of 2023,” said the strategist of Wells Fargo Securities.

For Joe Manimbo of Western Union Business Solutions, the Fed “could signal that it will wait even longer before considering a rate hike that would be favorable to the dollar after its recent promise to allow inflation to be a bit. higher”.

At the end of August, its president Jerome Powell had indicated that inflation above the 2% target could be tolerated for a certain time without causing an automatic increase in interest rates. These vary between 0% and 0.25%.

The dollar becomes more profitable and therefore more attractive to traders if there is a rise in interest rates.

This slight decline in the euro may also have echoed the comments made by officials at the European Central Bank.

On Friday, the institution’s chief economist, Philippe Lane, wrote in a blog “that there is no room for complacency” on the part of the ECB in the face of the risk of a strong euro.

The day before, during her monetary policy press conference, ECB President Christine Lagarde had declared that her mandate was to “maintain price stability” and, in this context, “the appreciation of the euro is something something to watch carefully “.

In addition, the pound sterling rose against the dollar (+ 0.33%,) at 1.2888 dollars, and against the euro (+ 0.47%) at 91.93 pence per euro.

British MPs on Monday evening gave their initial approval to Boris Johnson’s controversial government bill, which has yet to go through several stages. This text allows him to go back, in violation of international law, on certain provisions of the Brexit agreement signed last year.

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