The US dollar gained on the euro during Tuesday’s trading as Brexit fears were driving the shared currency of the eurozone down. The greenback also gained on the Great Britain pound and commodity currencies, but fared worse against safe haven currencies like the Japanese yen and the Swiss franc.
Market participants are nervous amid uncertainty about the future of Great Britain and the European Union. The resulting negative market sentiment made currencies associated with safety gain on their rivals. This explains why the US currency performed well versus its risky counterparts but struggled to rally against the safer ones.
Domestic fundamentals, albeit overshadowed by the Brexit talks, were also helpful to the US dollar. Basically all reports released from the United States over Tuesday were good (or at least better than expectations). Prospects for an interest rate hike from the Federal Reserve in the near future (even though most certainly not this month) also played in favor of the greenback.
EUR/USD dropped from 1.1289 to 1.1212 as of 23:29 GMT today. NZD/USD tumbled from 74.97 to 74.06. At the same time, USD/JPY ticked down from 106.22 to 106.00. USD/CHF went down from 0.9642 to 0.9632.
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