US dollar remains strong vs majors

Posted 11 July, 2018

In the middle of the week, the US dollar is rising vs the majors in Europe. The biggest plunge was posted by the Australian currency, after losing some 0.76% against its American counterpart. The New Zealand dollar decreased by some 0.55%. The euro dropped 0.1%.

During the conference of the European Central Bank, Mario Draghi did not cover monetary policy in his speech, so prices failed to show heavy fluctuations during his statement.

The euro-to-US dollar is fluctuating up and down today driven by the unstable situation in the UK given the political tensions in the country as well as the further escalation of the US-China trade war.

The US President, Donald Trump, ordered to start imposing the extra 10% duty on Chinese products worth $200 billion. Meanwhile, if Beijing takes countermeasures, Washington will set new tariffs. In this situation, the risk-off demand will progress. 

The euro decreased to some 1.1695. The recent price was recorded at some 1.1731.

For now, the market is waiting for the results of the Central Bank’s meeting in Canada. Specifically, it is expected that the regulator may increase the interest rate by 0.25% to 1.50%.

Previous forecast

12 July, 2018 13:39

← Bank of Canada draws line in soft monetary policy

After the monthly meeting on July 11, the Bank of Canada raised the interest rate to 1.5%. In Q1 the Central Bank's representative voiced plans for the summer rate revision depending on the CPI dynamics. As it was expected, the regulator increased the rate, so Canada has broken the trend and ended a 7 year long soft monetary period.

Bank of Canada draws line in soft monetary policy

Next forecast

11 July, 2018 10:30

Large CBOE funds resume bitcoin sales – COT →

The Commodity Futures Trading Commission (CFTC) released the Commitments of Traders (COT) for the week ending last Tuesday Non-commercial traders raised net short position on bitcoin contracts by 130 to 1,500. Large speculators have started lifting net positions after a 2-week decline. Net short positions recovered from the bottom recorded since March 20.

Large CBOE funds resume bitcoin sales – COT
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