US President has emphasized Twitter WHAT espera¿ the meeting with the North Korean leader.
The euro erased all weekly earnings.
Flows end of the month and quarter kept the forex market subject to great volatility that has been noticed early this morning especially in the yen. Japan ‘s currency has lost more than 1.4% from 16 – month high reached earlier this week and has touched 107.00 yen, a milestone two weeks. The good news from the geopolitical front, regarding future summit between the US and North Korea, have boosted the dollar also advanced against the euro.
Community currency leaves about 1.5% from the five-week mark reached on Tuesday at $ 1.2476 and has washed up very early this morning near $ 1.23. While the day on Tuesday weak economic data contributed to the decline in the shared currency, on Wednesday, the strength of consumer confidence data in Germany failed to hold the euro above $ 1.23.
The decline in Eurozone currency has also suffered in the last hours by the more cautious tone exhibited by several members of the European Central Bank (ECB) on the order of stimuli. If shopping were you earlier this week spurred by statements of Bundesbank President -and strongest candidate to replace Mario Draghi as head of BCE- Jens Weidmann, about a possible rate hike in mid-2019, the emphasis on prudence Ewald Nowotny has caused the opposite reaction.
At the macroeconomic level, this Thursday is published the preliminary CPI for Germany, which will serve as a prelude to reading prices in the Eurozone. The market consensus expects a rise to 1.6%, in annualized terms, compared with 1.2% in February. Yet in this country, they will be announced labor market data where it is expected that the unemployment rate dropped one tenth in March, specifically to 5.3%, from 5.4% previously.
However, if the dollar continues to rise, “will be the main driver to lead the crossing and although from the macro support the euro, traders will turn a deaf ear and continue to sell the euro to 1.2250 dollars mark” explains the founder of BK Asset Management, Katy Lien.
DOLLAR, underpinned by geopolitics
In addition to these factors, the other side of the Atlantic, the ‘greenback’ has been found in geopolitics gasoline to achieve its peak against the yen since last September.
The dollar holds firm against its rivals, after it has emerged that North Korean leader Kim Jong Un is ready to denuclearize the Korean peninsula. This was stated by the president of North Korea at a meeting in Beijing with Chinese President Xi Jinping. In addition, according to Reuters, Kim told Xi he hopes the summit with the US President, Donald Trump.
Republican, meanwhile, she posted a note on Twitter in which he emphasized his desire that the bilateral summit held.
Experts say that any “progress in relations between North Korea and the US is favorable for the markets because it relieves one of the greatest geopolitical risks last year, therefore has a prominent influence on the evolution of the dollar and Wall Street” says Lien.