Dollar shrugs off from massive selloff
The dollar advanced on Monday, showing signs of bottoming out from lowest levels since 2015, amid weakening threat from the hurricane Irma and concerns related to the situation on the Korean peninsula, reports Bloomberg.
North Korea threat receded, as no missiles were launched on Saturday, the anniversary of the state establishment, amid many warnings from the West.
Traders are waiting for the UN Security Council meeting on the North Korean issue. According to Reuters, the draft new UN sanctions against the DPRK does not imply an oil embargo, but contains provisions on the embargo on oil and gas condensate.
Positive dynamics of the dollar is supported by last week’s news on US macroeconomic statistics and the agreement on extending the state debt limit until mid-December.
Global risks fade as North Korea threat recedes, safe heavens decline.
Gold quotes entered the trading week with a decline, retreating from one-year peak, amid a decrease in fears about the confrontation between the US and North Korea.
Interest in defensive assets fell after North Korea threat faded as the country didn’t test any weapons on the weekend during celebration of the state anniversary. Last week, gold prices recorded a third consecutive week of growth. The yellow metal received good support due to political instability on the Korean peninsula and a reduction in the likelihood of US monetary policy tightening.
UK’s growing discontent to Brexit.
In England several thousand people took to the streets of London, protesting against Britain’s withdrawal from the European Union, reports BBC. Participants of the “People’s March for Europe” marched through the city center to the square near the parliament building, where a rally was held later.
According to the leader of the Liberal Democratic Party Vince Cable, the number of people who are worried about the consequences of Brexit is growing. Many came to the march in yellow and blue clothes and with the flags of the European Union. Former Energy Minister Sir Ed Davy, addressing the audience, said that his anger was replaced by deep disappointment, and rage – despair. He added: “Since the beginning of the Brexit talks, I have had a third sense – shame.” Shame on the leaders of the country. “Disgrace for Britain.”
A representative of the Conservative Party in the House of Lords, Baroness Patience Whitcroft, urged demonstrators to continue the campaign to preserve Britain within the EU.
Pound advanced to 1.32 level against US Dollar and may continue upward march should public outcry on Brexit heighten, blurring the outlook on country’s divorce with European Union.