The dollar more and more difficult to grow in the context of disagreements in the US and China
After a morning rally, the dollar has tempered the heat and in the middle of the trading environment shows a mixed, but mostly positive. Momentum is not pronounced, and in General on the markets some nervousness.
One of the reasons for the reassessment of the outcome of the meeting trump and si after the initial euphoria, which was replaced by a skepticism regarding the successful promotion of trade negotiations. Citing the lack of details of the agreement, as well as to the ambiguous nature of the statements of the parties, investors are hesitant to lay in the price of a speedy resolution of trade conflict between the two largest economies in the world.
These concerns provide some support to the dollar as a protective asset. Also, there is a temporary absence of such important recent driver, as yields of treasuries – the debt securities market the US is closed today on the occasion of mourning following the death of George Bush. At the moment, sentiment on Treasury bonds is one of the key risk factors for the us currency and the subject of debate in the markets as a whole, as profitability is becoming more openly honking of a coming recession.
In the short term, the USD may get support from the publication of the report the fed “Beige book”, unless, of course, the regulator voiced its concern over the prospects of a slowing economy and point to the still strong GDP. In this case, the recently faltering concerns the termination of a US rate hike will pougasnet, but in the longer term bearish risks for the dollar are likely to grow, and to grow the currency will be more difficult.
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