US Dollar has failed its small rebound from 6 1/2 month lows and is now back to 96.68 on the US Dollar index, close to last week’s lows. USD weakness has been attributed to the current investigations of Trump’s ties to Russia and how this could somewhat delay progress on Trump’s promised agenda for tax and stimulus changes.
In terms of yields as well, longer dated treasuries saw yields drop as demand for such treasuries rose, in turn the lower yields dented the USD’s appeal.
EURUSD is close to testing last week’s highs of 1.1268, as we are currently trading just off this level at 1.1245. Realtime Forex’s TraderTip sees the bulk of the rise being over near 1.1249/1.1277 to then retrace back towards 1.1221/1.1205 – this is today’s daily scenario.
GBP experienced some volatility yesterday as the latest government polls, as they approach 8th June elections, showed that the discrepancy between support for the Conservative and Labour party is just of 3 percentage points. The GBP is still weake across the board this morning.
In today’s economic docket the highligt goes to Canadian Manufacturing PMI and the US ISM Manufacturing for the month of May.
