Dollar dives on Trump tensions
|Today's Highlights
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US Dollar could fall further on Fed speech
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G20 in focus for currency markets
Current Market Overview
The US Dollar hit a multi-month low against the Euro and the Japanese Yen on Tuesday 25thJune, on the prospects of monetary easing by the Federal Reserve and concerns about US tensions with China and Iran. The US Dollar Index fell to its lowest level in three months to 95.943 against six of its currency rivals, having lost 1.7% during the latest five currency trading sessions. The US Dollar weakness was most notable against what are traditionally seen as safe haven assets, such as the Swiss Franc and Gold, while even received a boost from the Middle East tensions in the flight to some sort of certainty.
The Dollar has been sold heavily since the US Federal Reserve last week alluded to cutting interest rates before the end of the year, as concerns increase about what the trade tariff wars President Donald Trump is waging against China and other US trading partners could mean for the US economy and its currency.
Federal Reserve Chairman Jerome Powell and a few other of its policymakers are due to speak later on today, so beware further movement for the US Dollar this afternoon.
It is also likely to be a volatile week for a number of currencies while the G20 Summit takes place, particularly as Trump is speaking with representatives from China later in the week.
What to watch out for next?
The Reserve Bank of New Zealand (RBNZ) rate decision will be announced this evening, along with US Federal Reserve Chair Powell speaking later today, so these will be the focus for markets today.
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