Forex today was strong trading the aftermath of the ECB and a market doused with dollar weakness on the political front.
Firstly, the euro eas bid on a mixed ECB statement and comments from Draghi that accelerated Bund yields as well on the back of the mention of an autumn window for reviewing QE tapering.
On the political front, Trump is under investigation. According to a recent report by Bloomberg, Special Counsel Robert Mueller, who is investigating the ties between the Donald Trump campaign and Russia in last year’s election, is now looking into a broad range of Trumps' business transactions. The dollar subsequently tanked. DXY is -0.49% into the close while US 10 years are -0.24% at 2.2642, recovering in the latter part of the session as did the dollar.
Stocks took USD/JPY down on the news, with the Yen now flat n the day having been up at 111.48 vs a low of 112.42 (BoJ's bullish growth picture was yen supportive o/n). GBP/USD was subdued with the euro perky and EUR/GBP keeping a lid on the pound below the 1.30 psychological level. The Aussie has the market's attention, with metals supportive and eyes remain on the 0.8000 level despite the shallow pullback o/n to a few pips below the 0.79 handle. The Kiwi cleared November's high with eyes on the monthly cloud base & 2016 highs but lacking impetus from the upcoming session.
Key events coming up in Asia
- NZD Visitor Arrivals (YoY) (Jun)
- RBA Assist Gov Debelle Speech
Key notes from US session
Mueller expands probe to Trump business transactions - Bloomberg
ECB: a call for a September tapering announcement - Nomura
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.