The dollar will fall not long

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At the beginning of the new trading week and month, the dollar is on the back foot against most currencies. The main catalyst of sales was a breakthrough in trade negotiations between the US and China at the G20 summit in Argentina. The two leaders agreed to a temporary “cease fire” for 3 months that gave investors hope for a gradual resolution of trade conflict.
Additional pressure on the USD as a safe asset had an agreement between Saudi Arabia and Russia about restriction of production that supported interest in higher-yielding assets led by oil prices, rollermine 5%.
However, once the markets settles the initial emotions, investors may come to the realization that a temporary truce does not give reason for confidence, and the parties are unlikely to resolve key differences over 90 days. In this context, the pressure on the USD may be short-lived, especially nearing the December meeting of the Federal reserve, which, despite a shift to more conservative rhetoric likely will raise rates a fourth time this year.
Also let’s not forget about the problems of Europe. Despite all the talk about concessions the Italian government, the obvious resolution of the budget crisis is still there. And in Britain, meanwhile, is coming vote in Parliament, which can reject the plan and may further undermine the position of Prime Minister.
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Michael Mashchenko,
Analyst social network for investors
eToro in Russia and the CIS