The US Dollar rises to fundamentals differentiation

[Jason_170491]

FX: Theresa May weakened to the pound due to concerns about the prime minister’s disbelief.



The dollar rallied after the US housing sales index was better than expected, while the euro was weaker due to sluggish indicators and pound sterling declined to political uncertainty.

US new home sales in March stood at 4.5% MoM, slightly slower than the previous month but better than the market consensus (-2.7%). On the other hand, the euro is weak as the Eurozone April consumer confidence index fell to -7.9. The pound fell on the news that the British Conservative Party has decided to pursue the resignation of the prime minister again.



Commodity: Rising international oil prices, supply-demand imbalance concerns.



International oil prices climbed on concerns that supply and demand could become unbalanced due to US sanctions on Iran. The US said that oil producing countries such as Saudi and UAE will respond to the decrease in crude oil production by increasing production. However, the fact that the scale and timing of the increase are still uncertain is fueling oil prices rising to $ 66.

Gold fell on the dollar. The US housing market was better than expected and the US dollar strengthened. In addition, the stronger US stocks and a stronger preference for risky assets also contributed to the decline in gold prices.

 

[bigdolly]

I think it's time to short Pound at full force because there is no chance for positive Brexit outcome as seen in tug of wars between Britains political parties.

 

[SanioTire]

I cant be sure whether there are going to be positive or negative outcome of Brexit. I think hat both sides (UK and EU) are very well aware of consequences of hard Brexit, and, I strongly believe that they will do everything to avoid such outcome

 

[Purekiller]

There will be a lot of that things, Europe is changing as hell lately. Teresa May resigned lately. And there are several types of oil do not forget about that please. Thanks in advance for that. I am still waiting for some global outcome for EU.

 

[Boyd35]

Well certainly there are many political changes currently going on in the whole world. It is not easy to stay informed about all developments and especially fully to understand how these current events affect Forex market and value of currencies, especially major ones

 

[Doctor911]

It is so true that the whole world is going though some sort of significant changes. I am trying to stay positive and think that all these changes are necessary in order to allow for world to grow further. What do you think about this perspective?

 

[Etedus12]

Two standouts that influenced the monetary world as of 2018: political strife and the odds of fading economic development. The first was very predictable following Brexit and Trump's
electoral victories in the UK and US, respectively. However, the later, creeped in on us like a virus — we never saw it coming! It was not far back when EU's financial bloom hit record highs. Now, as per Markit, with stock action reaching to its slowest pace thus far, all we can do is anticipate such currency fluctuations. By and large, everyone’s focus, of course, is on the US dollars. Need I say, America is still the greatest!.

 

[Shalirad]

So many time (well, at least relatively) have passed here since creation of that topic so I am more than sure it's really that needed anyway. Can we go on with that lately for whatever it takes. I do hope it will work out much much better.

 

[Boyd35]

Well, Etedus, America is and always been a great country. I have no doubts about it. But, do they need to drag the whole world into recession in order to prove that they are great, when we already know that?

 

[gridmaster]

It is so true that the whole world is going though some sort of significant changes. I am trying to stay positive and think that all these changes are necessary in order to allow for world to grow further. What do you think about this perspective?

well... It's hard to tell. Not all changes are great - but I'm trying to stay positive as well.
But it's really hard to focus on achieving your goals when you don't what is going to happen tomorrow, you know?