US dollar came weak, driven by Trump's comments

23 Aug 2017 10:07 AM

The volatility of the financial markets has increased over the past few weeks as a result of a number of events, including rising tensions in the Korean peninsula, particularly North Korea's threats, besides the turmoil in the White House and growing doubts about the US president's ability to pursue his economic agenda.
The US dollar fell as the Asian session started from its highest level against the Japanese yen since August 17 at 109.81, reaching its daily low of 109.31 before recovering slightly, as a result of Trump's pledge to supporters in Arizona to tighten the migratory process on the Mexican-American border, saying "We will build this wall even if we have to shut down our government."
Also, the dollar index, which measures the strength of the US dollar against a basket of 6 currencies, fell to its lowest level since yesterday at 93.33 after failing to surpass the resistance at 93.53. The EURUSD also saw some stability at the 1.1744 levels after testing the broken downtrend line of the descending channel on the 4-hour chart and rising slightly thereafter to trade at 1.1760.
Janet Yellen and Mario Draghi will be on the lookout for the Jackson Hole symposium, although it is expected that won't be nothing significant will be announced about monetary policy.
The rise in Libyan oil production has played a role in raising concerns about oversupply in the crude oil market. As crude oil prices continued to decline at the beginning of trading today to trade at levels of 47.55 dollars per barrel, and Brent crude prices fell to trade at levels of 51.59 dollars a barrel.
Gold is still trading near the strong resistance level at $ 1294.97, and as long as remains below this level, the negative outlook for the yellow metal is expected to remain targeting the 1267 $ level in the medium term.

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