Euro saw a slight rise against a basket of currencies on Tuesday and continued to make limited gains against USD as the day’s volume was weak due to Christmas holidays. This rise is due to the continued decline of the US dollar against most major currencies Washington’s political tensions continued to escalate after the US government closed in part on the backdrop of a dispute between the US Congress and President Trump over the spending bill to finance a US-Mexico border wall to curb illegal immigration of the country, To dissolve the general budget crisis in Italy.

Euro traded today at $ 1.1410, after gaining 0.33% in yesterday’s trading.

The financial markets were optimistic that the Italian Senate would approve the revised 2019 budget, which was approved by the European Union earlier in line with the EU’s financial rules, which would help Italy away from the disciplinary measures it could face if it insisted on Budget that violates European Commission policies.

The US dollar is suffering further declines

The US dollar fell against a basket of world currencies on Tuesday, as the US government closed partially after the US Congress and US President Donald Trump failed to reach an agreement on the spending proposal and the likelihood of a confrontation between the US administration and the Federal Reserve , Especially after recent reports that Trump wanted to sack Reserve Bank chief Jerome Powell for his anger over his fiscal policies.

President Trump yesterday criticized the Federal Reserve Bank, which he described as the only obstacle to the US economy, which would have a negative impact on global financial markets, especially with growing expectations of slowing world economic growth.

Tensions in domestic affairs in Washington came in the wake of a major sell-off in global equities since the beginning of October due to fears of trade tensions between the United States and China, the world’s largest economy, and continued tightening of US monetary policy.

Currently, the dollar index, which measures the performance of the US dollar against the other major currencies, is trading at 96.15 points.

Last week, the index lost about 0.5% for the second week in a row, as risk averse investors moved away from high-yielding currencies amid uncertainty about global economic growth.