The recent rally of the dollar has stopped as optimism regarding the course of trade negotiations between the US and China has stimulated demand for more risky currencies. The trade dispute between the two largest economies in the world has put pressure on world markets since the middle of 2018 and any signs of real detente tend to improve sentiment. US President Donald Trump said he could "move a little" the deadline for the ultimatum for China if both parties were close to a deal. This news together with the agreement that prevented another partial closure of the US government has caused a sharp rise in stock markets and supported more risky currencies. Today, market participants do not want to buy a dollar but want to take risks.
In this case, the euro/dollar situation looks different. The Fundamental decline in the economic outlook in both the US and the Eurozone brings uncertainty that can support the growth of the dollar. There is ample evidence that global growth is slowing and one may be suspicious of the end of the US-China trade war. All of which speaks in favor of the American currency.
In this case, the euro/dollar situation looks different. The Fundamental decline in the economic outlook in both the US and the Eurozone brings uncertainty that can support the growth of the dollar. There is ample evidence that global growth is slowing and one may be suspicious of the end of the US-China trade war. All of which speaks in favor of the American currency.
The New Zealand dollar showed excellent results during Wednesday trading, adding more than 1.5% after the release of less significant than the expected statement of the Central Bank. On the other hand, the Australian dollar, which is a barometer of risky assets, added 0.3 percent to 0.7120 dollar.
