US FX Handover RiskOn Rally Leaves US Dollar and Yen Behind

Matt Weller
By :  ,  Head of Market Research

  • Fed Chairman Powell noted that the central bank would “act as appropriate” to sustain the expansion, with some analysts interpreting those comments as a sign that the central bank was considering an interest rate cut as soon as Q3.
  • Two developments prompted traders to breath a tentative sigh of relief on US-Mexico trade tensions: Mexico’s President Lopez Obrador expressed confidence in making a deal to avert US tariffs ahead of June 10. Separately, Senate Majority Leader McConnell stated there was “not much support” for tariffs on Mexico.
  • The US dollar and Japanese yen were the weakest major currencies in risk-on trade; the pound was the strongest major today.
  • EUR/USD nudged higher ahead of Thursday’s ECB meeting.

Related tags: Forex Dollar

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