Forex Marketz Daily Forex News – Fully Markets Update
Overnight, the dollar was trading at a 16 month high in the widely traded dollar index which measures the greenback against six other currency majors. Traders are convinced that the Federal Reserve will raise rate again in December and political risks in Europe are putting pressure on the British pound and the euro. Italy is at odds with the Eurozone with its budget.
The U.S. currency has recovered from its losses as a result of the mid-term elections that split control of the Congress that would damper and new fiscal spending. The greenback is being supported by the Fed which is getting ready to hike rates in December and at least two to three times in 2019.
On Monday, the dollar index was trading at 97.578. This is the index’s highest price point since June 2017. U.S. trading was quiet thanks to the U.S. Veterans Day holiday. While Wall Street and the Forex markets were open for business, the U.S. bond market and financial banks were was closed.
As the Dollar Recovers the British Pound and Euro Lag
The British pound has lost one percent as traders doubt if Prime Minister Theresa May can get any support from the European Union or her own party for any form of a Brexit deal.
The U.K. has less than five months before they are scheduled to exit EU on March 29. Negotiations are still stalled over a hard border between British-ruled Northern Ireland and southern Ireland.
The GBP/USD markets lost 0.91 percent to trade at $1.2856. The benchmark EUR/USD market was down as well and the ERU/GBP market was slightly lower to trade at 0.8736 pence.
