European Assets Struggle to Grow Against US Dollar

Despite the lack of optimism among market participants after the adoption of the tax reform bill by the US House of Representatives, the US dollar still managed to strengthen against its counterparts. As a result, after hitting a 3-week high of 1.19, the EUR/USD pair started to correct its movement. However, in the European mid-session, the euro is again trying to grow against the US dollar. The British currency also went down amid spontaneous emotional outburst for traders. The pound fell below 1.3360 against the US dollar. When the elation eased down, the pair showed a correctional movement. Now it is trading around 1.3380. Investors continue to closely monitor the process, if the UK withdraw from the EU. British Prime Minister Theresa May suggests that the procedures should take 2 years. According to experts, negotiations on this issue may be held within the next 2 weeks.

Meanwhile, currency strategists believe that amid optimistic Brexit news, the pound is unlikely to stay at the current levels against the US dollar in the short-term. Moreover, we can say the same about the single European currency. Today, the US will release data on economic development for the third quarter. Economists expect the GDP to remain unchanged at 3.3%. In the second quarter, the indicator rose by 3.1%. Currency strategists suggest that if traders remain pleased with the published US macroeconomic statistics, then the US dollar can extend gains against majors.

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