US FX Handover: Risk-On Rally Leaves US Dollar and Yen Behind
Matt Weller, CFA, CMT June 4, 2019 8:34 PM
See a summary of the top FX themes and trends from today's US session!
- 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.
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