U.S Dollar reversing a nearly six-months’ high as the Euro rallied
June 8, 2018The U.S Dollar fell on Tuesday, reversing a nearly six-months’ high gains, after Italian Prime Minister Giuseppe Conte said that the government had never considered leaving the Eurozone.
Conte told the parliament on Tuesday that his new government had no plans to leave the Eurozone. Italy’s ruling Coalition’s original choice as economy minister, Euro-skeptic economist Paolo Savona, was turned down and replaced by a more reassuring figure for financial markets. The Euro also benefited as Bloomberg, citing sources, reported that the European Central Bank could conclude its next policy meeting this month with a public announcement on when its quantitative easing program would end, analysts said.
The U.S Dollar index, which measures the strength of the U.S Dollar against a basket of six other major currencies, dropped by 0.18 percent to end the session at 93.83.
In Europe, the Euro traded on higher notes against the Greenback, the EURUSD rose by 0.17 percent to close Tuesday session at 1.1717.
Market players said that the Euro got a boost on Tuesday after Bloomberg, citing sources, reported that the European Central Bank could conclude its next policy meeting this month with a public announcement on when its quantitative easing program would end. However, many traders thought the European Central Bank would seek to avoid causing a ripple at its next policy meeting on June 14 given the uncertainty caused by the Italian political situation.
The report followed a speech by Italy’s new Prime Minister Giuseppe Conte, whose promise of radical change had mixed blessings for the Euro.
While his reassurance that leaving the Euro was not on his agenda helped to underpin the common currency, the new government’s tax cuts and higher welfare spending plan lifted Italian bond yields, undermining investor confidence.
Meanwhile, in the United Kingdom, The Sterling strengthened against the U.S Dollar, rising by 0.63 percent to end Tuesday’s session at 1.3395.
Regarding the safe-haven assets, the Japanese Yen traded flat on Tuesday to close at 109.78, while the Swiss Franc strengthened against the Greenback, the USDCHF rose by 0.3 percent to trade 0.9844 at the close.
Meanwhile, Gold traded on a higher note against the Greenback on Monday; the XAUUSD dropped by 0.32 percent to end the session at 1296.25 U.S Dollars per ounce.
The Canadian Dollar weakened to a 2-1/2-months’ low against its U.S. counterpart on Tuesday, pressured by the prospect of U.S President Donald Trump moving toward bilateral discussions on trade with Canada and Mexico. The USDCAD rose by 0.27 percent to end Tuesday’s trading session at 1.2965.
Regarding the U.S Crude Oil prices, Oil July dropped by 0.9 percent, to trade at 65.51 U.S Dollars per barrel at the close.
Over in Australia and New Zealand, The Australian Dollar fell by 0.4 percent on Tuesday to trade at 0.7614 at the close, and the New Zealand Dollar dropped by 0.1 percent to end the session at 0.7022.
