Currency – The dollar bounces to its best month since February

© Reuters. The dollar bounces back, to its best month since February

The dollar is gaining ground on Tuesday as investors ignoring the indictments in the case of interference in Russian in the american presidential election of 2016.

The USD/JPY advance of 0.24% to 113.44 at 09:19 AM ET (01:19 PM GMT) after falling to 112.96.

The dollar was under pressure after the us investigators in the case of the interference in Russian during the presidential election of 2016 have indicted the former manager of president’s campaign, Donald Trump, Paul Manafort, and a wizard Rick Gates for money laundering on Monday.

The special prosecutor, Robert Mueller is also investigating the potential obstruction of justice Trump in the dismissal of FBI director James Comey.

Investors fear that these accusations to divert the attention of the legislative programme of Trump and, in particular, of the reform of taxation.

Investors await the latest policy decision from the Federal Reserve on Wednesday, in search of clues to the trajectory of interest rates this year and in view of the u.s. employment due Friday.

The american president Donald Trump is considering to nominate Jerome Powell to head the Federal Reserve, which would draw attention to the continuity of the monetary policy. Powell is perceived as less falcon that the economist John Taylor, the other candidate to lead the Fed.

The yen reacted little to the decision of the Bank of Japan to keep rates unchanged Tuesday, as expected.

The euro declined with the EUR/USD at 1.1639.

The single currency ignores the figures have shown a slowdown of the inflation of the euro area of 1.4% in October.

Another report showed that the economy of the area has progressed in its annual rate, the fastest since the beginning of the crisis, boosted by growth in France.

At the same time, another report from Eurostat shows that the unemployment rate in the euro area decreased to 8.9% in September from 9.0% in the previous month. This is a low since 2009.

The book progresses with the GBP/USD up 0.28% on forecasts of a rate hike by the Bank of England, for the first time in a decade on Thursday.

The greenback is gaining ground against the canadian dollar with the USD/CAD up 0.48% at 1.2895 after figures have shown that the country’s economy had contracted 0.1% in August.

The index dollar, which measures the greenback’s strength against a basket of six major currencies, rose 0.15% to 94.51.

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