Forex – dollar slips before Christmas and with the political uncertainty

© Reuters. – The us dollar was lower Monday, marking the beginning of the week so that the confidence on the financial markets remained fragile in the face of growing concerns about the political instability in the United States.

The exchange volumes are reduced and most of the global markets should close for Christmas. Us markets close early on Monday, Christmas eve, and will be closed Tuesday for Christmas day.

The dollar index, which measures the greenback’s strength against a basket of six major currencies, declined 0.2% 96,25 at 03h45 ET (09.45 GMT).

The market will remain attentive to developments in Washington DC after the failure of the u.s. Congress and the president from Donald Trump to accept a bill of expenses before midnight Saturday, which has led to a partial shutdown of the u.s. government.

Mick Mulvaney, director of budget and chief of staff of Trump, warned on Sunday that the closure could continue until 3 January, when the new Congress will meet, and that the democrats will take the House of representatives.

At the same time, information according to which the president Trump has suggested to dismiss the president of the federal Reserve, and Jerome Powell, could upset the financial markets are already volatile.

The us Treasury secretary, Steven Mnuchin has tweeted Saturday evening that Trump had told him that he suggested ever return the head of the Fed.

The u.s. central bank has raised rates for the fourth time this year last week and has maintained most of its forecasts of further increases over the next two years, drawing the ire of Trump, who has repeatedly criticized the tightening of the Fed, which has had detrimental effects on the economy.

Elsewhere, the greenback weakened against the yen, the USD / JPY has lost 0.25 per cent to trade at 110,97.

The euro rose, with EUR / USD up 0.2% to 1,1395.

The book was also on the rise, the GBP / USD gaining 0.2% to 1,2669 in the current political impasse in regard to the efforts of Great Britain to exit the european Union.

– Reuters contributed to this article

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