Dollar weakness on weaker US interest rate expectations - ANZ
|Analysts at ANZ explained that, overnight, the USD weakened further as markets marginally trimmed US interest rate expectations (US 10-year yield fell to 2.33%).
Key Quotes:
"The sell-off is continuing in the aftermath of Trump’s sacking of FBI director Comey (increasing political uncertainty) and the miss on the US CPI data for April. This was despite firmer IP numbers, which pushed the Atlanta Fed GDPNow estimate for Q2 GDP to 4.1%.
Euro area Q1 GDP was confirmed at 0.5% q/q, which reinforced expectations that the ECB will soon have to upgrade its forward guidance. Oil was mildly weaker (WTI -0.25% at $48.7/bbl) and gold was firmer (+0.7%). Equities were unchanged to a touch weaker. The FTSE 100 rose 0.9% despite the stronger CPI data suggesting real disposable income is being eroded, which will weigh on consumption."
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