Euro Falls to One-week Lows As Trump Reportedly Favors A Policy Hawk As Next Fed Chair

The euro extended its downbeat rally to a fourth consecutive trading session on Tuesday after the dollar strengthened following a report showed U.S. President Donald Trump was favoring a policy hawk as the next head of the Federal Reserve.

The single currency dropped more than 0.3 percent in European trading session on Monday after shedding 0.25 percent the previous day, sending the pair down to trade at $1.17600 – the lowest level in one week.

The greenback edged higher after the New York Fed’s business conditions index released on Monday jumped to the highest reading since September 2014. The figure climbed to a three-year high of 30.2 in October from 24.4 in September, easily beating economists’ expectations calling for a reading of 20.

The U.S. dollar continued to tick up following a report that said President Trump was favoring Stanford economist John Taylor to head the Fed. Taylor is seen as a more hawkish policymaker than current Fed Chair Janet Yellen

Trade suggestion

Sell Stop at 1.17600, Take profit at 1.17200, Stop loss at 1.17800

 

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