Forex: The Dollar is pushing up, the Book falling against the risk of Brexit – The u.s. dollar rose on Tuesday against a basket of currencies, thanks to rising yields of the u.s. Treasury, while the pound sterling closed at its lowest level since 27 months in a context of growing fears about the prospect of a “Brexit” without an agreement.

The dollar index against a basket of six major currencies gained 0.2% to 97,17 at 10: 15 am.

The greenback gained 0.25% to 108,13 yen.

The euro has slipped 0.17% to 1,1187, in the face of growing expectations that the president of the European Central Bank, Mario Draghi, will announce a reduction of rates in September, during a political meeting which will be held later in the week to fight against the tensions of the world trade.

“The ECB will take a bold decision to satisfy the markets who are calling for a gradual thawing and make a difference to the economy, while remaining within its institutional framework and does not destabilize the financial system,” wrote Carl Weinberg, an economist and international officer at High Frequency Economics.

The pound was down 0.3% to 1,2436, ranging in scope from a low of 27 months 1,2382 reached last week.

The british pound sterling falling due to the likelihood that the british Conservative party in power to elect Boris Johnson as the new leader and prime minister, replacing Theresa May. The outcome of the internal elections of the party, which lasted for several weeks, will be announced on Tuesday.

There are more and more speculation that Johnson would withdraw the Uk from the EU on October 31, without a trade agreement in force.

The new zealand dollar declined 0.4% to 0,6731, in part under pressure from the reserve Bank of New Zealand, who looks at the strategies of unconventional monetary policy, with interest rates already down to 1.5 per cent.

–Reuters contributed to this report

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