The dollar continues to strengthen, the Euro fell to lows of April

The dollar continues to strengthen, the Euro fell to lows of April


According to the trades, as at 12.02 Moscow time the dollar index grew by 0.27% to of 99.65 points, which is the maximum mark for last seven months. The Euro against the dollar for the first time since April had fallen to 1,0648 dollar.

MOSCOW, Nov 17. The dollar on Tuesday, retains a confident positive dynamics against most major world currencies, including the Euro depreciates to its lowest level since April, as investors turned their attention from concerns after the terrorist attacks in Paris on the statistics coming from the U.S. and its impact on the prospects of a rate increase by the fed, according to AFP.

As at 12.02 Moscow time, the dollar index (the dollar against a basket of currencies of six major U.S. trading partners) grew by 0.27% to of 99.65 points, which is the maximum mark for last seven months. The dollar against the yen rose to the 123.3 yen per dollar with 123,18% at the previous closure. The Euro against the dollar for the first time since April had fallen to 1,0648 1,0686 dollar with the dollar a day earlier.

Bidders await the publication of new macroeconomic data from the US this week to assess the reality of the prospects for a December rate hike by the fed. In particular, the Tuesday before the opening of the exchanges, the U.S. labor Department will report data on consumer prices in the U.S. in October. According to analysts, in annual terms they grew by 0.1%, month-on-month inflation was 0.2%.

Also markets are waiting for data of industrial production in USA in October. According to forecasts, the indicator has increased in monthly terms by 0.1% after declining 0.2% a month earlier.

Strong data from the U.S. increases the likelihood of a base rate increase in the country in December. The exchange rate of the European currency actively reduced, because it increases the possibility of expanding the quantitative easing program (QE) by the European Central Bank (ECB).

“It seems that the immediate impact of the Paris events on market sentiment exhausted. As for trends in the Forex market, then we went back to the trend recorded before the events of the weekend: the Euro drops in anticipation of ECB meeting in December and a possible expansion of the QE program”, — quotes Agency the words of currency strategist at Royal Bank of Canada, sue Trinh (Trinh Sue).