FX Daily Outlook | 09-06-17
Posted on June 9, 2017 at 9:14 am GMT[..]
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Sterling plunged on political uncertainty after an inconclusive result in the UK general elections that took place on Thursday, with no single party having a clear claim to power. The dollar moved higher as it was unfazed by former FBI Director James Comey’s testimony yesterday. The British pound lost over 2% against the greenback, touching near a two-month low of $1.2634. The euro surged against sterling to a high of 88.58 pence. Exit polls showed the likelihood of a hung [..]
The much-awaited risk events taking place over the course of the day began with the European Central Bank policy meeting followed by the press conference by President Mario Draghi. The UK general elections are in progress with exit polls expected at 21:00 GMT. The euro briefly dipped below $1.1200 after the ECB policy decision was announced as the market was looking for a more hawkish signal. The ECB left rates unchanged as was widely expected but dropped its easing bias [..]
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Currency markets were showing signs of caution ahead of key risk events later in the day. Risk aversion supported gold and the yen. The euro and sterling held steady while the dollar index wallowed near seven-month lows. Investors are bracing for the European Central Bank’s policy meeting and for the UK general election. All eyes will also be on former FBI Director James Comey’s congressional testimony. In terms of economic data, the downside miss on Australia’s April trade surplus pushed [..]
The US dollar has lost more than 1.5 percent versus the Japanese currency so far this week, weighed down by a sharp drop in US Treasury yields, which were driven lower by a combination of economic and political factors. A batch of weak US data has raised concern that the Federal Reserve may slow down the pace of interest rate hikes. Meanwhile, political risk is also putting the greenback under pressure due to controversies surrounding President Donald Trump that could [..]
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The Australian dollar rallied on upbeat GDP data while the greenback steadied after sharp declines this week. Upcoming key risk events tomorrow dampened risk appetite in the markets as investors were cautious ahead of the UK elections, the European Central Bank meeting, and the testimony to a Senate committee by former FBI Director James Comey. This helped support gold near seven-month highs. The aussie was one of the best performing major currencies against the US dollar in the Asian session [..]
Uncertainty ahead of the UK general election and Comey’s testimony in the US Congress on Thursday drove gold to a 7-week high in European trading today, while the US dollar made fresh lows. The greenback has been under pressure since Friday when a disappointing non-farm payrolls report dampened expectations of a third rate hike by the Fed this year, although markets are still pricing a rate increase at next week’s FOMC meeting. However, worries of an escalating political fallout in [..]
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