Forex – Euro remains stable despite Trump, the summit on the Brexit expected

© Reuters. – The Euro is still fighting this Tuesday in Europe, while the us administration is preparing to impose new tariffs to the European Union in response to what it perceives as unfair subsidies to the giant aerospace Airbus.

This news is a reminder clumsy for the end of the trade war with China could simply allow the United States to launch a new one with his other business partner and commercial rival, which would be a new threat to a slowing world economy.

At 11: 00, the Euro was 1,1270 USD, an increase of 0.12% compared to Monday night in Europe.

The Dollar Index, which measures the greenback against a basket of six major currencies, was down -0.13% at 96,528.

There seems to be little appetite for big bets a day before a european summit decisive on the application of the First british minister Theresa May to extend the deadline of Brexit. May should meet with the German chancellor Angela Merkel and French president Emmanuel Macron later in the day to plead his case. However, discussions between the parties with the leader of the opposition, Jeremy Corbyn, did not provide an alternative that is clear, which, according to the EU, is a prerequisite to the granting of an extension.

The Pound Sterling rose slightly against the Euro and the Dollar on cautious optimism with regard to the need to avoid the worst-case scenario.

Wednesday will also be the venue for the meeting of the Board of governors responsible for establishing policies of the European Central Bank, where the markets will be looking for further clues on the preparations for a monetary recovery that could bring down the Euro.

The president of the ECB, Mario Draghi, has hinted that the bank could consider “tier” the rates of penalty on excess reserves of banks, which would help to mitigate the effect of negative interest rates even lower on the profitability of the banking system of the euro area. Few of them expect, however, to a short-term action despite a net slowdown of the economy in the first quarter.

During the night, the rising price of Oil has continued to support the currency related to raw materials, such as the canadian Dollar and the Russian Ruble. The Aussie and the Kiwi were also slightly stronger than the Dollar.

Like this post? Please share to your friends:
Leave a Reply