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Investing.com – The dollar has shown signs of a slight rebound in the early European trade on Friday on the basis of an economic survey of japanese lower than expected, and persistent fear of a conflict between the United States and Iran.
However, the greenback remained under pressure after the u.s. federal Reserve announced mid-week that it was ready to lower its interest rate in the event of a slowdown in the u.s. economy.
At 10: 00, the dollar index, which measures the greenback against a basket of six major currencies, was up less than 0.1% 96,67, after diving to 95,998 during the night – its lowest level in three months.
The global economy continues to show signs of weakness: the preliminary reading of the purchasing managers index of the IHS Markit for the japanese manufacturing industry fell to 49.5, which represents a third consecutive month of contraction. Annual inflation has remained stuck at 0.7% in may.
The PMI Flash for the euro area and the United States are also expected later in the day.
The dollar fell to its lowest level in 14 months against the yen, the transactions of carry trading that has been diminished in the wake of the destruction by Iran is a drone of the us navy. According to some information, the american president Donald Trump would have approved of the strikes on the iranian facilities before you change your mind. At 10: 00, it had rebounded to 107.40.
In Europe, the euro moved higher despite the failure of the leaders of the European Union to choose a new president for its powerful executive, the European Commission, at their last summit. This failure also makes it less likely for a quick decision on the next president of the European Central Bank, having regard to the tradition of the block which is to apportion the top posts among its members. The euro was up slightly, at 1,1305 dollar.
The book has also been largely stable, the markets have well understood the importance of the latest developments in the race for the leadership of the Conservative party. Party members have four weeks to choose between Boris Johnson, who promised to withdraw the Uk from the EU even without an interim agreement on October 31, if the EU refuses to re-open negotiations on the withdrawal agreement of Theresa May, and the current foreign Affairs secretary, Jeremy Hunt, who has followed a line of less aggressive on the Brexit. The pound is down less than 0.1% against the dollar to 1,2689$.