By Peter Altra
Investing.com – The US dollar is firmly at the start of trading on Monday in Europe, just below the 20 – year highs, with traders heading to this safe haven for a slowdown in global growth and rising geopolitical tensions.
At 10:15 AM ET, the, which tracks this currency against a basket of six other majors, is broadly flat at 104.597, having briefly crossed the 105 level on Friday, the highest level since the month of December 2002 in the.
Investors are seeking the green reserve as a safe haven amid concerns about the US Federal Reserve’s ability to resume high inflation without stimulating a recession, concerns about slowing growth caused by the war in Ukraine, as well as the economic impact of China’s lockout measures. to curb the latest outbreak of COVID-19.
Goldman Sachs added to concerns about US growth this year as the investment bank lowered its forecasts to reflect financial markets shaken by the tightening of Federal Reserve monetary policies.
The bank now expects the economy to grow 2.4% this year and 1.6% in 2023, compared to 2.6% and 2.2% previously shown.
Disappointing data from China has sparked concern about the global slowdown. April retail sales fell 11.1% for the year as a whole, almost double the expected fall, while industrial production fell by 2.9% instead of the expected slight rise, reflecting the deep damage being done by COVID-19 protection measures for the second largest economy in the world. .
Continued geopolitical tensions over the Ukrainian war are also fueling dollar demand, following Finland and Sweden’s entry into the North Atlantic Treaty Organization this weekend.
Moscow has consistently warned of the possible consequences of this decision, especially on the side of Finland, which has a long border with Russia, so this is likely to increase tensions.
“The market is concerned about the link between the tightening of nutrition monetary policy and the expected global slowdown arguing for volatility and instability in risk assets,” analysts at ING (AS:) say in a note. “Ultimately, this should keep many investors interested in buying the dollar at the dips.”
The pair is down 0.1% to 1.0406, just above Thursday’s 1.0354 level, the lowest level since early 2017, while the pair is down 0.2% to 128 .94, recovering after being hit by the level 131.35 last week.
The pair is down 0.1% to the 1.2243 level, having fallen to 1.2156 last week, weighed down by weaker – than – expected Q1 GDP figures.
The UK is due to publish its inflation data on Wednesday, which is expected to show that consumer prices rose by up to 9.1% in April, giving the largest increase in annual inflation since 1980 and the fastest rate of inflation since 1982.
The pair is up 0.1% to 6.7975 and the pair is down 0.7% to 0.6892 as both the yuan and the Australian dollar have been hurt by Chinese data since April, slightly worse than expected.
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