Currency comment 6/20

Over the last week the U.S. dollar has risen moderately. During the same period foreign currencies have drifted lower. The currency that has traders watching closely is the British pound (the oldest world currency still in use at 1200 years). The main reason for the traders interest is the Brexit negotiations which began this week. Whether we see a soft Brexit or a hard Brexit will determine the value of the pound in coming months.

Investors are intently watching crude oil which was lower again Tuesday. Since the beginning of the year crude prices have declined by 24%. This is a very large drop which will produce fall-out in financial markets for the rest of the year.