US Dollar is seen easing off the gains seen throughout the 2-day recovery, from Monday to Tuesday. On the US Dollar index (DXY), a measure of the the value of the USD relative to a basket of foreign currencies, we are currently trading 99.42 levels which level also coincides with the 20 DMA.
Trump’s abrupt dismisal of FBI Director James Comey wasn’t well peceived, given that the latter was leading investigations of alleged Russian intervention into last year’s US presidential run-up. With some coining the idea that this may be an attempted cover-up.
The USD ceded some of its early week gains after the dismissal dominated the headlines.
USDJPY peaked to 114.32 yesterday, which level represents a close-to two month highs. However we’re seeing a bit of a pullback this morning as the JPY recovers slightly due to its safe haven appeal, just as the risks of the sudden dismissal of Comey in the US continue to be absorbed.
We had some over night data from China; Chinese CPI rose to 1.2% from a previous 0.9% and also surpassing expectations. Producer Prices (PPI) on the other eased to 6.4% from 7.6%, PPI is largely seen a CPI forecaster.
Today Draghi is expected to speak in Holland and late tonight from New Zealand we have the RBNZ rate decision.
