FXHIGHWAY

 Breaking News

Dollar trims yesterday`s losses, but still seen vulnerable

News Date: 28/3/2017 03:41:12
 

The US dollar rebounded on early trades, attempts to offsetting yesterday's heavy losses as concern over US President Donald Trump's failure to legislate a health care program sparked fears about his ability to legislate other fiscal policies.

At 03:48 GMT, the USDIX is floating near the opening price of 99.05 after falling yesterday to a low of 98.66.

The US dollar continues to suffer from negative pressure with speculation that Trump will not be able to legislate other fiscal policies, such as tax cuts and infrastructure spending, which investors in stocks markets are hoping for.

Yesterday, the Dow Jones fell nearly 200 points in early trading, but reversed the losses at end trading to around 45 points, down to 20550.98 levels.

Investors have re-evaluated the bad news about the health care program already, as there are a different views, it could be an incentive for Republicans to do better with tax reform.

The US dollar is unlikely to fall in one direction, as Republicans can not face mid-term elections on November next year without taking a single fiscal stimulus.

The weakness of US and global equity indices drives investors to buy low-yielding currencies as a safe haven. The Japanese Yen is at the top of these currencies. Yesterday, the USD / JPY pair sharply fell, reaching new lows of 110.10.

The US Dollar fell 0.27% to levels around 110.56 against the Japanese Yen.

The beginning of the improvement in sentiment in the stock markets will ease the negative pressure on the pair, which will push it to trim the losses recorded during the last few days.

The euro rose after economic data showed German business climate index grew better than expected in March, boosting expectations for the euro zone's biggest economy to grow at an accelerated pace in the coming period, leaving the door open for the ECB to raising interest rates.

The Euro is trading around the opening price of 1.0866 against the US Dollar.

The euro was also boosted by the victory of German conservatives led by Chancellor Angela Merkel in the regional elections in the western state of Saarland on Sunday, boosting the likelihood of a fourth-term victory by the Conservatives in September's national elections and reducing the chances of their rival Social Democrats.

The pound settled around 1.2560 after rising yesterday nearly 1% to reach the highest level in eight weeks at 1.2615, as the UK's exit from the European Union triggering on Wednesday, but markets are becoming accustomed to the idea of ​​a UK exit from the EU in due course. It is unlikely to have a significant impact on the pound sterling.

 Sponsored by: CloudsIndex.com

Latest news

Corona virus infection in the United States of America reached its maximum, reaching two million, 840 thousand and 906 cases, according to the Centers for Disease Control yesterday, after it recorded
07-2020 06 00:36:17

After the long collapse, the American labor market is achieving some relative recovery, as the number of added jobs yesterday reached 4,800 million jobs, which exceeded all expectations, and came as
07-2020 03 00:34:55

Beginning with the latest developments in commodities, the gold futures contracts started this morning with a rise of 0.70%, to be traded at 1784.56 dollars an ounce, after opening at 1771.61 dollar
07-2020 01 03:47:05

Oil prices continued to lose their losses after the recovery in demand decreased, due to the high number of injuries they suffer, and Brent crude fell by the same percentage 2%, which in turn pays to
06-2020 29 05:49:33

The US dollar concluded its research for the week, sticking to its gains, which means that the demand remains on the latter, and this is due to it being a safe haven in light of fears and concerns ab
06-2020 26 06:34:32

More News

Logs

Advertisements