US Dollar Drops Further as US Data Disappoints
In today’s fundamental analysis: the economic calendar is empty suggesting low volume neutral trading in tight ranges. On Friday, the US dollar (USD) returned part of its post-Fed gains as US data disappointed. The USD needs strong data or positive Fed comments to regain more ground. These factors probably won’t be available today. GBP hovers off the recent lows as the Brexit negotiations formally begin.
- GBP/USD fell 0.19% to 1.2730, off session highs of 1.2797 after the UK Office for National Statistics (ONS) said the claimant count increased by 7,300 in May, compared to expectations for a 20,300 people gain.
- The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 96.99.
- USDJPY added 0.12% to 110.19, while USD/CHF was almost unchanged at 0.9689. The Australian and New Zealand dollars were stronger, with AUD/USD up 0.54% at 0.7579 and with NZD/USD gaining 0.37% to 0.7251.
- Asian stocks rose on Monday, shaking off Wall Street’s uninspiring performance on Friday. Oil continued to retreat, trading near the lowest level since November. Gold prices held steady, with investors still cautious after the Fed raised rates by another 25bps last week.
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