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The UK should begin negotiations on withdrawal from the EU until the end of June. Against the background of growing uncertainty, the pressure on the pound will increase. In any case, Brexit will have negative consequences for the British economy, economists say.
The dollar declined as a result of last week. Ambiguous report on the US labor market, published last Friday, led to a sharp drop in the US dollar. According to the US Department of Labor, unemployment in May fell by 0.1% to 4.3%, the lowest level in 16 years. However, other details of the employment report disappointed market participants.
Aggravated in the US political uncertainty caused last week sales in the world stock markets, primarily American, and a sharp decline in the dollar. Investors are increasingly questioning the ability of the Donald Trump administration to carry out tax reforms and implement budgetary stimulation of the economy in order to accelerate its growth.
As the head of the ECB Mario Draghi stated in his speech to the legislators of the Netherlands last week, “it is still necessary to maintain the current very significant monetary stimulus for further growth of the basic inflationary pressures. It’s too early to talk about the final success”. The passions about the presidential elections in France have subsided, and the extra soft monetary policy of the ECB is again on the forefront.
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