Threat of government closure depresses US dollar

Posted 19 January, 2018


The US dollar has weakened against the majors driven by a threat of temporal closure of the government on coming weekend.

The decline was caused by the failure of the US officials to agree on the Federal budget.

For reference, earlier American currency felt pressure from the expectations that the global economic growth would exceed US rates and force central banks of other countries to tighten monetary policy earlier.

In the first half of Friday, the US Dollar index reached 90.05 (0.28% down), which is just a step away from the 3-year bottom of 89.97.

The euro-to-US dollar exchange rate went up 0.33% to 1.2276. At the same time, GBP-USD remained almost unmoved at 1.3910 (0.09% up).

JPY and CHF progressed against the US dollar. As a result, USD-JPY dropped 0.45% to 110.59 and USD-CHF – 0.33% to 0.9556.  

Australian dollar posted gains vs US counterpart: AUD-USD added 0.30% coming to 0.8024. Slight changes were recorded in NZD-USD, with the rate staying at 0.7306 (0.10% up).

USD-CAD stayed almost unmoved at 1.2414 (0.06% down).

Previous story

19 January, 2018 12:58

← Weak UK reports put pressure on GBP-USD

The sterling has started moving downwards vs US dollar today. The negative dynamics of the British currency is related to the release of UK's retailing data, that showed low performance in this sector. Yet, with US dollar weakening observed lately GBP rate managed to remain close to an 18-month peak. The sterling-to-US dollar exchange rate left the previous session top of 1.3941, though ...

Weak UK reports put pressure on GBP-USD

Next story

18 January, 2018 18:24

US economic reports drive USD-CAD up →

The US dollar posted gains vs the Canadian dollar on Thursday. The rebound is driven by the announcement of US economic data. At the same time, negative development of the Canadian currency is partly related to the persisting pressure from increased interest rate by the Bank of Canada. As a result, USD-CAD added 0.19% coming to 1.2465.

US economic reports drive USD-CAD up
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