Dollar still strong due to its save-heaven Nature

Weekly Report - 12/11/2018

US Dollar Holds Steady

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The popular USD made some nice profits last week and On Monday flew upwards to 16-month high while investors are anticipating the U.S. |FED to keep tightening monetary policy.

The Federal Reserve has confirmed once more its plan to increase interest rates by 25 basis points next month, supported by two more possible rate increases by mid-2019 on the back of an upbeat economy and rising wage pressures. The USD has also profited from its safe haven characteristic while market members walked away from hazardous assets due to U.S.-China trade disputes, Brexit risk, and the delay between European Union and Rome over Italy's design for a big-spending budget and wide fiscal deficit.

The Week that was


The U.S. congressional elections held on Nov. 6, with the Democratic Party dominating the house generated some market volatility as expected.  Now, on the other hand, the FED left the interest rates unchanged for now but the results may be different on the next FED interest rate report. The United States and China were still far from a deal to settle their trade disputes. The UK and EU went a little closer to a deal on Brexit, helping the uptick in the GBP on the first days of the week, but from the 7/11 up to 12/11 the popular currency dropped about 254 pips to 1.2918.

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Main Focus This Week


This week has numerous major releases with key stats that are going to drive the majors along with geopolitical uncertainty in Italy, Brexit and the U.S -China trade conflict in focus. The releases will cover the following, for the UK we will have retail trade, inflation, and employment, wages for US inflation, industrial production, and retail sales, now about Germany Q3 GDP growth and investor morale for China industrial output, retail sales and fixed asset investment; India inflation, foreign trade and industrial production; Japan Q3 GDP growth; Australia employment figures, consumer and business morale.

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