Investing.com – After eight days of increase in a row, the us dollar finally declined on Wednesday in early european trading, while the demand for assets shelters is weakening under the effect of signs that the u.s. federal government will not be closed this year.
President Donald Trump said Tuesday that he was not satisfied with a provisional agreement to Congress that would provide just a quarter of what he had asked for a wall on the southern border of the United States. This is only a part of the 23 billion dollars that have been allocated to border security.
In addition, the attraction to risk has been strengthened by the firm conviction of Trump that he will postpone the march 1 deadline for the imposition of new customs duties on imports from China if the United States and China are progressing sufficiently to solve various business problems in the meantime.
“If we are on the point of concluding an agreement … I see myself letting this drag on for a little while,” said Trump. The chinese yuan climbed after the comment, recovering most of the losses.
At 03h15 (08h15 GMT), the dollar index, which tracks the greenback against a basket of major currencies was 96,82, down from a peak of 97,18 established in one night by 2019.
Elsewhere, the euro and the pound rose slightly, but gains in the euro were capped by comments from the head of the Dutch central bank Klaas Knot, who told the Financial Times that the current slowdown in the economy of the area “could last a few quarters.”
Knot is one of the makers of the most hawkish of the european central Bank, and his caution illustrates how the ECB has reduced its ambitions to reduce interest rates to normal levels, while the economy has weakened.
The book has won 1,2898 dollar after that the tv channel ITV (LON: ITV) has commented on the comments of the negotiator-in-chief of the british Prime minister, Theresa May, Olly Robins, where Robins was predicted that May would propose to Parliament, in march, a choice between his withdrawal agreement from the EU or a long extension of the process of Brexit.
Such an approach would appear to reduce the risk that the Uk leaves the european Union on march 29, without any transitional provisions to protect the trade with its main trading partner.
In the same night, the kiwi has advanced more than 1.5% against the u.s. dollar after the reserve Bank of New Zealand announced that it would maintain probably its key interest rate unchanged for the rest of the year, thus defying expectations of a rate reduction. On Wednesday, the market will focus on the Swedish central bank Riksbank, which raised its key rate for the first time in seven years in December, but that could change its prospects at the meeting of the development of its policy today.