Dollar can be supported soon

29 August, 2018

Stock markets profit-taking thrust can support the dollar in the coming days


The dollar is almost unchanged to the major currencies in the past 24 hours; it managed to recover the losses incurred on Tuesday morning. The dollar index fell to 94.35, the lows since August 1 following the surge in demand for risky assets on the news about the start of the U.S.-Mexico trade negotiations.

However, the market has returned to the safe-haven demand quite quickly: EM currencies fell under pressure, and the participants of the U.S. stock exchanges fixed the profit after S&P 500 grew to 2900 level. The index earlier this week has finally overcome the downturn since the beginning of the year and has added 2.7% this month, renewing historical highs.

This is a considerably strong movement, so it is reasonable to expect some traction to the fixation of profits by major participants on final days of the month.

In this case, the dollar can get some support after two and a half weeks of decline. In addition, the single currency returned to the area of resistance, having reached the 1.1730 of dollar, after which the pair turned to decline and is traded now at 1.1680. The British pound, the Japanese yen and the Australian dollar were decreasing on Tuesday to the US dollar. Crude Oil and Goldwere losing the part of their earlier gains as well, hitting the wave of profit-taking.

The Mexican peso lost on Tuesday 1.8% to 19.07 per dollar after the details of the bilateral agreement had been announced. With regard to the automotive industry, it provides the U.S. President with the possibility to introduce 25%-tariffs for the import of cars above the level of 2.4 million, which is solely one third higher than the deliveries of the year 2017. The lowering of the peso was reinforced by a general sentiment of currencies weakening in the developing countries during trading on Tuesday.


Source link  
Markets recede from the recent highs

A strong Nonfarm Payrolls caused pressure on the stock markets, reducing the chances of the interest rates lowering by the Fed in the upcoming months...

Gold resumes rally, pushing past $1400

Gold prices resumed a push higher on Monday, as flows into the precious metal continued on improved prospects for easier monetary policy from...

Gold rises as markets slip

Market caution continues to support gold. Quotes of this metal rose to $1337, repeatedly trying to push above this year highs at the 1340-1360 area...


Trump says Brexit should happen

President Donald Trump promised the U.K. a "phenomenal trade deal" Tuesday, on the second day of his state visit to Britain...

Euro and Gold instead of Dollar

Gold rose on Monday to the highest levels since February, reaching $1327 per ounce. In the first hours of the Tuesday trading session, there...

Markets recover after the drop

The markets decline on investors' fears that trade conflicts will drag on and slow down demand, and this dynamic coincided with breaking through important...


Markets pressured by Huawei problem

Alphabet and some other American IT companies have suspended business with Huawei, which is one of the first examples of major consequences for...

The climate is changing rapidly

British people need to fly less, drive electric cars, eat little meat and turn their home thermostats down to 19 degrees Celsius (66 Fahrenheit) in order to rein...

Chinese stocks saw their worst week

Chinese stocks have taken investors on a ride this year. Shanghai and Shenzhen have been the best performing global markets this year, with the Shanghai...

  


Share it on:   or