Trump's performance pushes the dollar to two-week highs. Where to go?

The dollar received another boost. The reason for the growth was the statement of US President Donald Trump about the readiness to raise tariffs and further, the war is likely to continue, and hence the demand for the dollar will grow. Trump's performance also negatively affected the pound. Trump said an agreement allowing the UK to leave the EU could hamper trade ties between Washington and London.


The threat of a worsening trade conflict between the two largest economies in the world will be the main source of risk next year amid expectations of a slowdown in the global economy. At the same time, the tariff war will continue to disperse the dollar, which is growing for the third session in a row. Investors choose the security of the most liquid currency in the world, fearing that the global economic recovery is losing momentum.

The important date is still November 30 with the upcoming meeting between Trump and C plays a key role. It is expected that at the G20 summit in Buenos Aires, Trump and Xi Jinping will discuss controversial trade issues and the results of this conversation will greatly affect trading-sensitive currencies. If the parties do not reach an agreement, it is likely that new tariffs will be introduced, which will increase the risks to trade.

Against this background, many may forget about tomorrow's speech by Fed Chairman Jerome Powell and skip the publication of the minutes of the Fed meeting from November 7-8, which will be published on Thursday. This is not worth doing. The protocols will show how the Fed officials are convinced of the need to further increase the interest rate.


The material has been provided by InstaForex Company -