Financial market felt the political pressure
World policy has always made its pressure on the markets, by inspiring or scaring investors for some deeds. Right now, mixed with the low 10-year Treasury yields in the USA, it affects the dollar.
Index of the dollar against six main currencies basket shows that the dollar is flat, and still stays at the 99.622. However, at the end of the week, it still has its 1 percent gain.
The dollar went down and lost 0.1 percent against Japanese yen, the most stable currency, and safe-haven for investors. It was equal to the 113.78 yen. However, at the end, it still keeps 0.9 percent weekly gain.
At the same time, euro is still up thanks to the Emmanuel Macron victory on the presidential elections in France, the confidence of EU in its unity, and positive economic earnings. It gained 0.1 percent and stood at the 1.0866 on Friday. Meanwhile, this week it lost 1.2 percent.
Comments from the Central Bank of European Union made enormous pressure on the euro. While they have confirmed that they are going to keep the same policy of monetary ultra-loose, its vice-president has assured that ECB will not change this decision until the fall for sure. According to him, ECB wants to avoid the relapse in the economy.
The pound of sterling stood still on Friday and was equal to the 1.2886 dollars recovering from a meeting of the English Bank and their decision to prolong the same interest rates. Officials said that it is unlikely that rates will be changes until the 2019 year.