Dollar Continues to Track Lower

We saw the dollar continue to trade under pressure during Friday’s trading as political uncertainty in Washington still weighs on it’s performance. We also had some mixed comments from Fed officials on Friday with Bullard remaining on the dovish side although he feels that events in Washington aren’t having a serious effect on the economy and Williams commenting that he feels the biggest threats to the US economy are external now.

It’s a quiet week in terms of fundamental data releases this week, so the market will continue to focus on the current themes and the situation in the US is dominating at the moment. The dollar finished the week on the back foot against most of the major currencies with the Eur up around 1.1200 on this morning’s open and Cable starting to look comfortable above 1.3000.

Later in the week things do get a bit more interesting with more tier 1 data scheduled and the BOC meeting on Wednesday night. We do hear from quite a few central bankers during the course of the week and the next FOMC meeting on June 14 will continue to gain in importance as events in the US progress.

Looking ahead to the rest of today and it should be a quiet start to the week with little in the way of fundamental data out, so once again the focus for traders will be on the news wires. The North Koreans have announced over the weekend that they have tested another missile so this may add to market uncertainty in the short term.

Good Luck trading today and if you have any questions or queries, please contact the team at info@sec.rakuten.com.au

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