The euro advanced Monday against the dollar, in a rather confident market despite the increase in the number of cases of Covid-19 in the United States.
Around 7:00 p.m. GMT (9:00 p.m. in Paris), the euro gained 0.50% against the greenback, at 1.1357 dollars.
Since the dollar is generally considered to be a safe haven, it tends to sag when optimism wins over investors, who then prefer to move towards riskier assets.
Also sought after for their stability, the yen and the Swiss franc suffered from renewed enthusiasm on the foreign exchange market and fell against the single European currency.
“China’s economy is recovering from the Covid-19 shock and indicators have recently signaled that growth is likely to accelerate further,” said Lee Hardman, analyst for MUFG, justifying optimism in the markets. .
The second quarter growth figure is expected on Thursday, and it should return to positive territory after a fall of 6.8% in the first quarter.
Investors reacted last Friday to a study showing the relative effectiveness of the antiviral remdesivir in combating Covid-19.
“The cautious optimism (…) is partly overshadowed by the increase in the number of cases, particularly in the United States,” said Fiona Cincotta, analyst for City Index, however.
The United States, which is by far the country most heavily affected by the pandemic, on Sunday recorded 59,747 new infections in 24 hours, according to the daily report of the Johns Hopkins University. The number of confirmed cases stands at 3,301,820 and the number of deaths at 135,171.
An official with the Department of Health in Washington said on Sunday that a reconfiguration in some large southern states particularly affected was not excluded.
Market players will focus their attention this week on the quarterly results of major US banks as well as data on retail sales and jobless claims in the United States.