Moscow. May 17. INTERFAX.RU – the dollar on Wednesday continued to decline against most world currencies due to doubts about the stability of the political situation in Washington. US Treasuries are becoming more expensive with the yen, but the long-term Japanese government bonds, one of the most popular protective instruments in Asia is generally stable.
The spot price of gold traded in London rose to its highest level in two weeks due to the decrease of investors ‘ appetite for risk, writes The Wall Street Journal.
Euro to 9:15 Moscow time on Wednesday was worth $quoted at 1.1106 against $of 1.1083 at the close of the previous session in new York. The value of the dollar is 112,44 113,12 yen against the yen at the end of last trading session.
On Tuesday, the dollar fell 1% against the Euro and by 0.6% against the yen.
The single European currency on Wednesday was about 124,89 yen compared to the 125,37 yen a day earlier.
The dollar index WSJ has been declining for five consecutive sessions, dropping to the lowest level since Nov.
Among Republicans there is a growing dissatisfaction with the actions and statements of the President of the United States Donald trump and his administration, writes The Washington Post. On Tuesday the Republican majority leader in the Senate Mitch McConnell said that Congress is not going to benefit the constant distraction of political scandals.
Meanwhile, the newspaper The New York Times on Wednesday published an article that trump has reportedly asked ex-FBI Director James Comey to stop the investigation against the former national security adviser Michael Flynn.
The white house later denied the information, saying that “the President never asked Mr. Komi or anyone else to complete any investigation.” However, the markets are this statement has not calmed.
Analysts predictions which Bloomberg has recognized the finest in the latest ranking, I do not believe in the imminent resumption of growth of the dollar. So the Australian investment Bank Westpac, number two on the accuracy of forecasts according to Bloomberg, advises clients to sell the US dollar in pairs with the Euro, the yen and the canadian dollar. Macquarie, a currency analysts who are in the top 10, believes that the dollar will fall further at least in pairs with the Euro and the yen.
“Obviously, the market took a premium for political risk from the Euro and shifted her to the U.S. dollar,” said a senior currency strategist at Westpac in Sydney, Sean callow. He expects that by the end of may, the dollar could fall by 2% against the Euro, the yen, the canadian dollar, but in June of a possible stabilization, since the June meeting of leading Central banks will play into the hands of the American currency.
The Euro rally will not be long and stable, because under it there is no fundamental basis, according to currency analyst at Brown Brothers Harriman in Tokyo Maasai Murata. He recommends that you do not believe the market rumors that the European Central Bank (ECB) could step in direction of raising interest rates, as the current situation in the Eurozone does not give grounds for such measures.