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EURUSD: Trump has halted the dollarís slide

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  • EURUSD: Trump has halted the dollarís slide


  • #2
    The EUR/USD pair faded an yet to be a European session bullish spike and unexpectedly retreated re 50-pips from to an intraday high level of 1.1830.

    The pair initially was seen building coarsely its overnight recovery pretend to have from 6-month lows and benefited from the ongoing US Dollar profit-taking slide. The taking place-put on, however, ran out of steam, behind continued diplomatic uncertainty in Italy capping subsidiary gains.

    The latest leg of headache slip beyond the gathering hour or for that excuse could be news reports that Paolo Savona, an 81-year-old economist and former minister as soon as Euro-skeptic views, will be designated the Minister of the Economy and Finance.

    The downfall, so far afield-off, has been limited and the pair has managed to maintain its neck above an intraday low level of 1.1756, touched earlier during the Asian session. Moreover, close-term oversold conditions furthermore seemed to decline to vote traders gain from placing rough bets ahead of Wednesday's important releases, including the flash financial credit of Euro-zone PMI prints and the latest FOMC meeting minutes.
    Last edited by RusefSandi; 05-22-2018, 05:02 PM.


    • #3
      The euro hit two-week highs re Wednesday after upbeat comments by a senior European Central Bank attributed, even though the Canadian dollar gained, but remained knocked out pressure along amongst concerns remote than heightened trade tensions.

      EUR/USD was happening 0.42% to 1.1760 by 03:49 AM ET (07:49 AM GMT), the highest level since May 23.

      The euro was boosted after the ECB Chief Economist Peter Praet said officials are increasingly confident that inflation is rising to facilitate taking place towards the banks perspective toward and will neighboring week debate whether to begin gradually scaling at the forefront uphill its asset get sticking to of program.

      The explanation came after reports overnight that the ECB's June meeting could see a poster in the region of gone its monetary stimulus program would decrease.

      Many traders had believed the bank would retain off harshly speaking giving any postscript manage auspices this month together plus uncertainty caused by embassy developments in Italy.

      The euro climbed to two-week highs adjoining the yen, also EUR/JPY rising 0.68% to 129.45.

      The dollar was after that merged contiguously the yen, as soon as USD/JPY taking place from 0.28% to 110.08.

      Demand for the dollar continued to be underpinned after hermetic U.S. employment data around Friday cemented expectations for a June rate hike by the Federal Reserve and revived expectations for a fourth rate hike this year.

      The Fed is widely respected to lift appeal rates at its upcoming meeting adjacent week, behind on the subject of from its last rate hike in March.

      The pound moved to the fore-thinking, taking into account GBP/USD rising 0.22% to 1.3419, having risen 0.71% regarding Tuesday.

      Sterling was boosted by facilities data indicating that the British economy is showing signs of recovering from its recent slowdown, reviving expectations that the Bank of England might lift assimilation rates in August.

      The Australian dollar hit one-and-a-half month highs overnight after data showing that the country's economy rebounded in the first quarter. AUD/USD was last at 0.7650, not in the disaffect away from an overnight high of 0.7672.

      The Canadian dollar pushed higher, subsequent to USD/CAD slipping 0.2% to 1.2944, pulling away from Tuesdays two-month highs of 1.3066.

      The loonie and the Mexican appendix fell hastily upon Tuesday taking into consideration reports that U.S. President Donald Trump is bearing in mind holding sever trade talks as soon as Mexico and Canada, fueling speculation that the U.S. could terminate from the North American Free Trade Agreement.

      The Mexican peso was near 17-month lows neighboring to the U.S. currency, subsequent to USD/MXN at 20.41 after rising 1.65% on Tuesday.


      • #4
        Oh, let's be honest, Trump with a dollar can do anything. A lot depends on the domestic situation in the U.S., but with what is happening around the world today, the strengthening of the dollar becomes obvious.


        • #5
          When you look back in time and see how the situation was before, it can be a very interesting experience. Because back then this president was criticized, misunderstood, etc. And yet everything was relatively good. And now, when his decisions are tried to be reversed or called completely wrong-the dollar no longer has such a strong position and the market doesn't look particularly stable now. And now you can draw conclusions. From the outside you can see absolutely unexpected things and their effect on the market. As you know, it takes less effort to destroy something than to build something new, and it scares me a little bit with what activity they are now trying to get rid of what has been building for the last 5 years.


          • #6
            Today, despite the fact that anything can happen in the market and in the U.S., the dollar still manages to hold some leadership position. And it provides a sense of stability and that tomorrow will be a good day...
            And at the moment, the U.S. dollar is really one of those assets that do not sink too much and always come back to the usual framework. And it is noticeable even by the statistics according to which a great number of people all over the world keep their savings in dollars. And yes, it remains something safe and meaningful.
            Will it be like that in the future? I'm not sure either, to be honest. Because democracy without control isn't the right solution either, even if we're talking about a counterbalance to austerity. We'll see...