The dollar continued its slide on Tuesday and conceded as much as 1% against the British currency and 0.7% against the European currency, as investors turned away from the greenback in the face of the gloomy economic outlook in the United States.

Around 14:50 GMT (16:50 in Paris), the pound sterling was worth 1.3232 dollars, shortly after touching 1.3241 dollars, an increase of more than 1%.

The euro was trading at $1.1936, shortly after reaching $1.1966, the highest since May 2018.

The rather sudden jump in the pound and the euro at the beginning of the US session, "is partly technical," Fawad Razaqzada, analyst at ThinkMarkets told AFP, referring to a movement "which is part of the downward trend that weighs on the dollar."

The dollar index, which measures the greenback's performance against a basket of currencies, has lost around 5% since the beginning of July, and more than double since its annual high reached on March 20.

It is trading at its lowest level in more than two years.

"Investors expect the US Federal Reserve (whose minutes of the last meeting will be published later in the week, editor's note) to maintain its extremely accommodative policy for a long time to come as the persistence of Covid-19 could continue to weigh on the economic recovery" in the United States, added Mr. Razaqzada.

"There are signs that the recovery of the world's largest economy has already slowed," he continued, citing the New York Area Manufacturing Activity Index.

This indicator published on Monday certainly rose in July, but much less quickly than the pace of June and anticipated, enough to encourage even more foreign exchange traders to offload their greenbacks.

For Avtar Sandu, analyst at Phillip Futures, "the concern raised by the postponement of discussions on the trade agreement between the United States and China", initially scheduled last Saturday, adds to the downward pressure on the dollar.

The two sides were due to provide an update on the trade deal signed in January and no date was given for a new meeting.

Tuesday Classes Monday Classes

14H50 GMT 21H00 GMT

EUR/USD 1.1936 1.1870

EUR/JPY 125.82 125.83

EUR/CHF 1.0776 1.0762

EUR/GBP 0.9018 0.9059

USD/JPY 105.41 106.00

USD/CHF 0.9029 0.9066

GBP/USD 1.3232 1.3103