Forex – euro remains stable, the us dollar strengthens


© Reuters. The euro remains stable, the us dollar strengthens

Investing.com – the euro and the dollar stabilised on Tuesday as investors await a new catalyst after the gains of the previous day, the signs of strength in the u.s. economy is shying away from business concerns.

The EUR / USD is stable at 1.1697 at 03:35 AM (07:35 GMT), after having increased up to 1.1743 Monday, the highest level since may 24.

The euro rebounded from a low of 1,1509 reached a week ago, concerns about the political situation in Italy is calming after-party anti-establishment have formed a coalition government, increasing fears that elections could lead to the exit from the euro zone.

The euro was stable against the yen, with the EUR / JPY to 128,43, after having rebounded from a low of 11 months of 124,61, reached a week ago.

The dollar was little changed against the japanese currency, with USD / JPY at 109,80, extending its recovery from the lowest of five weeks 108,10 established last Tuesday.

The demand for the dollar continued to be supported after the employment data of the United States has confirmed a rate increase by the federal Reserve in June and raised expectations of a fourth rate hike this year.

The Fed is expected to greatly raise its interest rates at its next meeting next week, after its last rate hike in march.

Trade tensions have eased after the Finance ministers of the major economies of the world have criticized the administration Trump on his decision on the import of steel and aluminum at a meeting of the G7 in Canada over the weekend.

During this time, talks between the United States and China on trade have ended without much progress.

The dollar index, which measures the strength of the dollar against a basket of six major currencies, is maintained at 94,06.

The pound was little changed against the dollar, with GBP / USD at 1.3311.

During this time, the australian dollar dipped slightly after the country’s central bank has left rates unchanged during the night, in a decision widely expected.

The AUD / USD is moving at 0,7642 after having grown by about 1% Monday, while the new zealand dollar rose slightly, with the NZD / USD rising 0.16% to 0,7037.

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