The dollar is trading slightly below its 16-month high against a basket of major currencies, still playing out the benefits of investor caution and reduced trader activity caused by political uncertainty in Europe and fears of a global recession.
Recall that investor confidence in the global market was undermined by the fierce trade tensions between the United States and China, concerns over the impasse over Brexit and the confrontation between Rome and the European Union on the Italian budget deficit.
In addition to this, it is believed that the growth of corporate profits in the United States reached a maximum amid rising borrowing costs.
As the dollar rose, bearish sentiment infiltrated the Asian market, while the MSCI index fell 0.87%, trading today at 477.5.
Recall that the US Federal Reserve intends to raise rates by 25 basis points in December of this year, and by the middle of 2019, two more rate increases will follow. All this inspires confidence and allows investors and traders not to doubt the good prospects of the American national currency at least until the end of 2019.
The material has been provided by InstaForex Company -
www.instaforex.com