Dollars slip; The euro and the pound gain ground while the appetite for risk revives By Investing.com

© Reuters.

Investing.com – The dollar was generally low on Monday. The euro and the pound sterling gained ground because of concern over the Italian budget line, but investors remained cautious in the face of the many persistent geopolitical risks in the markets.

The, which measures the strength of the bank note against a basket of six major currencies, fell 0.27% to 96.56h at 04h32 ET (09h32 GMT), moving away from the peaks of the week to 96, 96.

The dollar was sustained overnight as fears of slowing global economic growth and trade tensions between the US and China undermined risk appetite.

The euro has strengthened against the dollar, registering an increase of 0.41% to 1.1382.

Italy's budget for 2019 boosted the euro between Rome and the EU after Deputy Prime Minister Matteo Salvini announced that his government could lower its borrowing targets.

The EU rejected Italy's draft budget for 2019, as it projected a deficit of 2.4%, which is a violation of EU budget rules.

The pound was also higher, up 0.22% at 1.2841, but gains were held back in the middle of Brexit.

On Sunday, European leaders approved the terms of the UK withdrawal from the block, but market watchers are now focusing on whether the Brexit deal will go to a vote in the UK parliament.

The pound fell slightly against the euro, rising 0.18% to 0.8862.

The dollar was higher than the yen, with an increase of 0.25% to 113.24.

Oil prices have stabilized following the fall of last week, but investors have remained cautious ahead of the next G20 summit, to be held later this week.

US President Donald Trump and his Chinese counterpart Xi Jinping are expected to meet on the sidelines of the summit and investors hope that talks between the two partners could lead to a ceasefire in the trade war between Washington and Beijing.