Dollar lower on rebalancing flows
June 28, 2019
The Bloomberg Dollar Index is down 1.7% in June and on pace to close its biggest monthly loss since January 2018. Sterling is set to be the worst-performing G10 currency for the second quarter as a no-deal Brexit still remains on the table. Markets are heavily sidelined ahead of Saturday’s US-China trade talks.
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June 28, 2019
EUR/USD 1.1388 GBP/USD 1.2723 USD/CAD 1.3072 AUD/USD 0.7016 USD/JPY 107.79 USD/CNH 6.8717 USD/ILS 3.5719 USD/MXN 19.2144 USD/CHF 0.9753 USD/INR 69.0350
The dollar is lower driven by the rebalancing of month-end flows. Traders are cautious ahead of the highly anticipated G20 summit showdown between President Trump and counterpart Xi Jinping on Saturday.On the data front, the Fed’s preferred inflation gauge showed numbers that were on par with expectations. Personal income and consumer sentiment readings released this morning beat estimates.GBP
Sterling posts gains after conservative leader candidate Boris Johnson refused to rule out suspending Parliament, if needed, to push through a no-deal Brexit on October 31. His rival, Jeremy Hunt, said he would push through a no-deal departure if it was the only option.
GDP data came in-line with expectations and overshadowed yesterday’s weaker consumer confidence headline reading.EURThe euro gains early momentum testing just below the 1.14 level seen earlier this week. Demand comes from higher than expected eurozone inflation numbers.CAD
The loonie continues its strengthening trend since early May as the currency touches its lowest level since late January. An evidently dovish Fed and elevated US-Iran tensions supports the move lower.ASIA/PACIFICThe Japanese yen marginally advances prior to tomorrow's US-China trade talks. The yen’s downward trajectory remains probable with no firm resolution in sight for the world’s two largest economies.
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