Forex Forecast November 29th 2017

The S. dollar shed some gains on Wednesday, but recovered well during the late European morning. The dollar recovered some of the losses of the last few days, during which political uncertainty and FED concerns over low inflation kept it under pressure, after good news from economic data and the Senate. President Trump managed to convince the Senate budget committee to approve the new U.S. tax bill, and now we could see a Senate vote as soon as Thursday; this was an encouraging signal for the President and his party, the Republicans, which have a thin majority in the Senate. Earlier on Wednesday, the greenback was brought under pressure again after North Korea successfully tested a new type of missile that should be able to reach the U.S.A., but eventually investors regained their faith later in the day. USD/JPY was up 0.45% for the day, trading at 112.01.
The British Pound is performing good for the day, after it was kept under pressure during the last few days due to uncertainties concerning Brexit talks. Apparently, the UK would be willing to offer as much as 50 billions to settle the “fine” established by the European Union for its separation from it; the news is encouraging, as the amount covers most of what the EU had requested, and gives hope for a smoother transition from now on, a much needed reassurance for the markets, after months of political uncertainty. GBP/USD was trading around the 1.339 level, up more than 0.4% on a 24-hour basis.
Meanwhile, Bitcoin skyrocketed again, breaking well over the 10,000$ target and heading for 11,000$. This new development puts the cherry on top of an already incredible year for the most famous digital currency in the world, which started 2017 trading around 1,000$ a coin, and has now topped that number more than 10 times. BTC/USD was trading at 10,960.27, up more than 10% for the day.

Reply