Forex News
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👤Erste Group
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EUR/USD – environment continues to favor the dollar
The US dollar gained additional ground in recent weeks. The drivers were both the political backdrop (Brexit, Italy's budget) and the deterioration in European economic data. In our opinion these dollar-supportive factors should persist for the time being. A decision regarding the separation between the EU and the United Kingdom is to be expected on 11 December at the earliest, following the vote in the UK House of Commons. A rejection of the deal may not be the last word though, as there is a chance for a second vote or even another referendum. Thus the process may well drag on into January. We currently do not expect a “hard” Brexit, but uncertainty remains high. In our view the conflict between Italy and the European Commission is bound to last even longer. In this politically uncertain environment we do not expect economic data in the euro zone to improve either for now.
By
👤Erste Group
