As investors turned cautious amid political worries in Europe as well as weaker stock and commodity markets after a long United States holiday weekend; comes the fall of dollar to two-week low against the yen and the Swiss franc on Tuesday.
In accordance to this, Shaun Osborne, chief FX strategies at Scotiabank in Toronto, claimed that there is a trace of aversion about the markets, after most global stock markets—as well as those in the United States, fell. Commodities in the United States also weakened as United States crude oil futures CLc1 trades below $50 per barrel.
On the other hand, the Eurozone falls in inflation in Spain and several German regions as well as Mario Draghi, European Central Bank’s chief, committed to continued emergency stimulus initially pushed the euro lower. Also, there are signs that elections in Italy may come earlier; there are a possibility that elections in Italy might come as early as September, and this adds to the euro’s early pressure.
However, the euro improved as the dollar struggled.
Oppenheimer Funds in New York portfolio manager: Alessio de Longis, claimed that the largest disappointment has come from the fiscal policy, as he cites for an uncertain time frame for the passage of healthcare reform and difficulties facing the border-adjusted tax, which he said met strong resistance in Congress and from important industry lobbies.
This is related from the dollar’s current state, as the dollar has been soft for the past two weeks on the concerns over the United States President: Donald Trump’s administration. In addition to this, in the late trading: the dollar index was down of 0.1% at 97.30 .DXY, with the euro ascending 0.2% at $1.1184.