Forex Forecast 21st November 2017

The S. dollar gave back some of its latest gains during Tuesday’s European morning, holding steady on a day-to-day basis against the other major currencies. The American currency reached weekly highs overnight, but eased back during the morning. Political uncertainty is still weighing over the U.S. currency, as we are getting closer to the Senate vote on the new American tax bill, the first program of tax cuts in years. EUR/USD recovered some of its recent losses during the early European morning, possibly due to a weak dollar, but then slipped down again, and it is now trading around the 1.172 level.

Yesterday has been a bad day for the Euro , which registered its greatest daily loss in the last month. During Tuesday’s European morning, however, it recovered some of the losses and steadied against the other major currencies. Nonetheless, it seems that the German political situation may weigh on the currency on the next few days as well. On Sunday, the FDP liberals, one of the three parties which were supposed to form the new government coalition, withdrew from the deal, leaving few options to Chancellor Angela Merkel and the other two parties: now, the choice is between a minority government, or the President calling for new elections if a government should prove impossible to form. EUR/JPY was trading higher during the morning, but registered some losses in the early afternoon, now hovering around 131.8.

Another big movement to register in Bitcoin . The digital currency, notorius for its volatility, suffered losses for around 400$ earlier, after news of Tether (a start-up that deals with Bitcoin) being hacked was released by the company itself. After reaching new record highs on Monday, Bitcoin prices fell under the 8,000$ level again, just to rebound a few hours later, and beat the 8,200$ level once more.