Forex – dollar hits a peak against the euro and the pound


© Reuters.

Investing.com – The u.s. dollar reached on Tuesday, its highest level in a week against the euro and the british pound in early european trading, thus strengthening the gains made as a result of the force of the u.s. data last week.

The lack of progress in negotiations between british officials and europeans on the Brexit also weighs on the two currencies against the dollar, while the Uk could leave the EU in march without a safety net, with transitional arrangements guaranteeing a trade smoothly.

The talks between the legislators, the british and the representatives of the european Commission, have not resulted in a significant progress on Monday, while reports suggest that the support for the first british minister, Theresa May, the interior of his own party was crumbling again.

The EUR / USD pair dropped to 1,1416 USD at 03h25 (08h25 GMT), while the pound fell to 1,3027 USD before rebounding slightly to 1,3031 USD.

The european markets are subjected to a hard test this morning, after a series of surveys of managers on purchases and es services, and retail sales in the euro zone in December.

Against the yen, the dollar was slightly lower at the beginning of the morning, after having topped 110 yen for the first time this year Monday in a context of a general recovery of risk appetite.

The movements involved in spite of of the data a little weaker than expected for orders in factories in the United States late Monday.

During the night, the australian dollar was slightly appreciated after the Bank of Australia has made the economic outlook more optimistic than expected. The RBA left its key rate to 1.5%, as expected, but governor Philip Lowe has refused to relinquish to new interest rate cuts later in the year, despite the new sign of weakness of consumers in the December report on retail sales. In Australia, the AUD / USD was 0.7243, up 0.3%, while the USD / NZD was stable at 1.4524.

The chinese yuan was stable overall, with local markets being closed for the holidays from the lunar New Year.

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