Dollar Extends Gains on Shutdown Deal, Europe Woes By Investing.com

Forex News


© Reuters.

Investing.com – The U.S. dollar rose to a new eight-week high in early trade in Europe Tuesday, as news of the deal to avert a fresh government shutdown was overshadowed by continued concerns about the U.S.-China trade war and more bearish talk out of Europe.

The , which tracks the greenback against a basket of major currencies, rose for a ninth straight day after German central bank chief Jens Weidmann warned in a speech that the euro zone was still not “crisis-proof”.

With one of the most obvious political risks to the U.S. economy lifted, the dollar remains the major currency best supported by short-term growth and interest-rate dynamics. The , British pound and yen by contrast are all struggling to develop any kind of momentum, given the problems in their home economies.

“We assess the risks of a ‘technical’ recession (in the euro zone) at about one in three,” said IHS Markit’s chief European economist Ken Wattret in a research note.

However, he said that “a severe recession remains unlikely, absent the usual triggers, including policy tightening and financial stress.”

The slid to a new three-week low overnight, extending the losses it made after a raft of data showing the U.K. economy close to stalling as the deadline to leave the European Union approaches.

However, it recovered some of its losses early Tuesday to trade at $1.2871.

The will be in focus later Tuesday, with the market waiting to see whether the Riksbank still believes it can raise interest rates this year. The krona has lost 3% against the so far this year as the economic outlook has worsened, and it’s now not far from the 10-year low it hit in January.

Elsewhere the rebounded a little after its drop on Monday, while the pair hit a new high for 2019 of 110.66 before retracing to 110.58.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

Articles You May Like

‘She’s Getting A Raw Deal’: George Clooney Defends Meghan Markle
Roger Federer Presents New Uniqlo Jeans Collection
Africa’s Back in Vogue as Eurobond Investors Lap Up High Yields By Bloomberg
EA’s new game ‘Apex Legends’ is taking a shot at ‘Fortnite’ – Tech News
Here’s Your Chinese Zodiac Horoscope For The Year Of The Pig

Leave a Reply

Your email address will not be published. Required fields are marked *