Currency News: The Euro and The Pound Are Up Against the Dollar
Currency News
The Euro and The Pound Are Up Against the Dollar
Today, the euro rose against the dollar, as well as the British pound, thanks to easing fears of a possible Brexit after the murder of a pro-European British MP.
The markets saw their fears of a Brexit after Thursday’s referendum diminish, after the assassination of the Labour MP Jo Cox known for its favorable positions towards the EU. According to analysts from Bloomberg, investors regarded the murder as a stop on the momentum of Brexit.
Hence, the euro and sterling have benefited from the event, reducing then the attractiveness recently won by the dollar as a safe haven.”The weekend polls suggested that the tragic death of Jo Cox could increase the probability of Britain staying within the EU, said the agency Bloomberg News. “People are also moving away from safe haven currencies,” he added. The likelihood of a vote in favor of a Brexit went from 40% last week to 30% on Sunday, following the murder of Jo Cox.
The dollar continued to the Federal Reserve (Fed) decision on its monetary policy. Indeed, the US Federal Reserve decided against a rate hike. Investors were wary about another possible rate hike, leaving the market with no activity other than losses. The FED will likely keep rates where they are, thus prompting investors to put more money into markets. Gold is one of the most attractive commodities because it has a safe return and is usually increasing.
