Currency behavior: the euro rises, the dollar and pound are getting cheaper
On the stock markets, there is a significant strengthening of the euro, along with falling rates of other types of monetary units. This behavior of the currency is associated with a number of negative processes that are now occurring in the UK and for outside of Europe. The dollar also showed growth, although it was insignificant. Yuan lost his position due to the proximity of the New Year on the lunar calendar.
What is the behavior of currencies in the February auction?
The euro / dollar trading pair rose by 0.2%, which was due to cross-demand. Even negative news from some Eurozone countries did not prevent growth. In particular, production in Italy was affected severely and general inflation in the EU reached a mark of 1.1%. The dollar showed a slight strengthening of positions due to published information from Bloomberg about jobs in the United States. Their number outside the agricultural sector grew by 165,000, but this only maintains the stability of the labor market.
Suffered and the Australian dollar. A fall of 0.5% was recorded in the trading pair with the US dollar. The course at the end of trading amounted to 0.72 USD, after which currency went into correction. This has contributed to the positive news about negotiations between the United States and China. Borrowed funds purchased AUD, left the market.
The British pound showed a decrease of 0.5%. This was due to news on the PMI manufacturing index on the islands. The report said the reduction to the minimum values over the past 3 months. In total, in February, the pound showed a drop of 1%. The euro to sterling rose to 0.87, and further growth is not far off.
A slight improvement in the dollar position is not what the experts expected. The US currency for the first month of 2019 showed steady growth, and in February, it stopped. An economist from the United States, John Williams, commented this situation. According to the professional, the negative trend will continue, and there are obvious reasons for this.
The specialist once again criticized the actions of the Federal Reserve System. He is convinced that there is no acceptable way out of the current situation, and the fall in the US currency, as well as the stock market, is not far off.
Williams foresees huge problems for the economy. The expert proposed to turn to the trends of the previous collapse of the market, when the USD was losing value, and gold, on the contrary, was headline up.
Williams noted that such shifts are an outflow of foreign capital from the country. In his opinion, the subsequent continuation of the FRS’s policy of raising interest rates will deal a severe blow to the country’s economy. The US Central Bank really has such plans. The specialist stresses that this will cause another reduce stock market. However, even if the position is maintained or weakened, a collapse of securities is inevitable.
Foreign investors will sell assets located in the United States, because of which the dollar will survive a serious decline. Accordingly, the FRS fell into a trap from which it is impossible just to get out. Williams believes that it is now that the US Central Bank is paying for the methods that saved banks during the 2008 global financial crisis.
