US sanctions against Iran and the risk of a Greek exit from the eurozone

The pressure on the European currency remained on Tuesday after the International Monetary Fund warned that Greece is once again at risk of exit from the eurozone. Support for the US dollar also gained due to talk about a possible increase in interest rates the Fed in March of this year.

Despite the absence of significant fundamental statistics, the European currency did not use a significant demand among traders, as the IMF said the stalled negotiations between the Fund and the Greek authorities, which in turn creates additional problems for the allocation of financial assistance to the country.

If the IMF will refuse to participate in the financing of the Greek debt, it will only increase the pressure on the euro zone, and thus lead to a decrease in European currency.

The IMF said yesterday that before you will be provided with financial assistance from the Fund, Athens and European creditors need to agree on a more substantial economic reforms and substantial debt relief.

Yesterday was also made by a representative of the IMF, which said that the Fed’s current monetary policy is identical to the control objectives, and does not require major changes. Fed President – Minneapolis Neil Kashkari noted that to some extent, stimulating monetary policy would remain appropriate to the current economic situation, adding that to date, the world situation is not conducive to raising rates in the US.

Such statements somewhat cooled the ardor of investors that put on the growth of the US dollar. Given the current uncertainty in the administration’s policy of Donald Trump, as well as a significant deterioration of relations with Iran is unlikely to merchants keep former volume of long positions on the US dollar. The most optimal trading instrument in such a situation is gold, which shows growth since the end of January this year, reflecting the entire political and economic reality in the world.

The new sanctions by the US against Iran led to pressure on oil futures as early as Monday, representatives of the Iranian oil sector have reported an increase in production levels.

Data from the American Petroleum Institute, which pointed to growth stocks for the reporting week, also led to a decrease in the cost of “black gold” at the end of yesterday. According to the API report, distillate stocks in the United States for the week rose by 1.4 million barrels, while gasoline inventories rose by 2.9 million barrels. The growth of oil reserves was the biggest, an increase of 14.2 million barrels over the past week.

Today, the attention of traders will focus on the report on reserves from the US Department of Energy.

Also, the UK Parliament decision will be taken today for the Prime Minister Theresa Mae authority to take a decision to withdraw the UK from the EU structure that can provide strong support for the British pound

traderblog.biz

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