The end of February – the dollar is losing ground

2019-02-24

In the last week of winter, the dollar will continue to weaken against other currencies. This is determined by the following factors:

The report of the Prosecutor General Robert Muller may lead to the impeachment of US President Donald Trump. He will report on the results of the investigations of the “Russian trace” in the US presidential elections, and also assess the extent to which the campaign headquarters and Donald Trump himself participate in this Russian intervention.

Speech by sales representative Robert Lighthayzer before the House of Representatives of the United States with a report on the preliminary agreements reached with China. This can “bury” the draft trade agreement with China.

This together will put a lot of pressure on the dollar.

European and British currencies are in a better position – the ECB guarantees a stable policy and, possibly, the extension of financial long-term support of banks after 2020. The only negative will be Brexit. The situation around him has not yet found an unambiguous solution.

British Prime Minister Theresa May agreed with the head of the European Commission to “freeze” the issue on the hard border between Ireland and Northern Ireland. It will be decided during the period of extension of the exit from the EU. This option will be offered for approval by the English Parliament next week, but the Cabinet of Ministers is opposed to it. The UK can get a deferment of the Brexit and be left without a government. Therefore, the situation with the pound is ambiguous.

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