Forex – euro declines, the dollar is advancing on geopolitical uncertainty


© Reuters. The euro declines, the dollar is advancing on geopolitical uncertainty

Investing.com – The euro declined on Friday as the dollar rose in a context marked by geopolitical concerns.

The euro remained under pressure despite the dissipation of the political tensions in Italy. The populists Five-Star and the League formed a government on Thursday and have received the approval of the president. Meanwhile in Spain, Prime minister Mariano Rajoy faces a confidence vote this Friday.

The EUR / USD fell 0.04% to 1,1686 to 5h24 ET (9: 24 GMT), hovering near a low of six months.

The dollar index, which measures the strength of the dollar against a basket of six major currencies, was up 0.09% to 94,03.

Investors turn to data on payroll and non-agricultural, often considered as an indicator of the health of the u.s. economy, at 8: 30 a.m. ET (12: 30 GMT). Traders will pay particular attention to the data on wages and any indication that the federal Reserve could raise interest rates.

The Fed has raised its rates in march and is expected to increase its rates twice more, including at its next meeting in June.

Trade tensions have continued after the United States announced that the country maintained tariffs on imported steel and the aluminium from the EU, Canada, and Mexico, raising fears of a trade war on a large scale. All three indicated that they planned to retaliate.

The dollar was higher against the yen and shelters, with the USD / JPY rising 0.34% to 109,18.

The british pound was slightly lower, with GBP / USD down 0.02% to 1,3293.

Elsewhere, the australian dollar declined, with the AUD / USD down 0.36% to 0,7541 and NZD / USD down 0.21% to 0,6986.

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