Today, the euro and the pound have gone up, as investor confidence in these currencies has increased due to the fact that the United Kingdom partially coordinated the draft divorce agreement with the European Union after more than one year of negotiations.
The surge in the growth of the euro and pound helped investors to take profits against the US dollar, which at the beginning of the week reached its 16-month maximum.
The dollar index, which demonstrates its value compared to the six major world currencies, is trading at 97.03 today, which is 0.28 percent less than yesterday's value. Recall that on Monday, the dollar index reached its 16-month high of 97.69.
Sale of dollar positions due to improved sentiment regarding the possibility of optimal resolution of the situation for Brexit, and not because of any deterioration in the main indicators of the US economy. Note that the euro and pound sterling account for about 70 percent of the weight in the dollar index.
The British pound is trading at $ 1,3006 on Wednesday, gaining 0.25 percent, as traders cut bear rates after the United Kingdom and the European Union agreed on a preliminary text of the agreement that would allow the United Kingdom to leave the EU.
Returning to positive sentiment amid the prospect of a potentially smooth and orderly Brexit deal, the euro rose 0.14 percent today to $ 1,175.
The material has been provided by InstaForex Company - www.instaforex.com