The dollar is growing on the European differences

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The American currency continues to strengthen virtually across the entire spectrum of the market. This contributes to a number of factors. The Euro is not felt noticeable relief from talking about a possible decline in the target level of the Italian budget deficit to 2.2%.
First, while all at the level of rumors, and second, the European Commissioner for economic and financial Affairs Pierre Moscovici today expressed concern over the Italian budget and added that this issue will be discussed at the G20 summit. So, in anticipation of this event, risk aversion may increase, which will further support the dollar.
The pound, meanwhile, also continues to defend back under 1.28 on the back of further extinction of the hopes for the approval of the transaction by the British Parliament. In addition to uncertainties, sterling is under pressure concerns a substantial reduction of the UK economy, even in the case of withdrawal from the deal.
Another factor supporting the USD is the situation on raw platforms. The fall in oil prices resumed after yesterday’s modest recovery. And unstable attitude to risk only reinforces the influence of the bears.
In other words, many of the concerns and fears of investors accumulated before the Argentine summit, act as drivers of demand for the American currency as a safe-haven asset. So if the upcoming summit of leaders “the Big twenty” will not bring progress in trade relations between the US and China, questions Brekzita, Italian budget and the situation on the oil market, the USD will continue to benefit from its protective status.
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Michael Mashchenko,
Analyst social network for investors
eToro in Russia and the CIS