Forex today: DXY gallops on Trump's budget and Mnuchin's comments
|The Forex space today was fairly subdued following the Manchester bombing overnight and markets waking up to the horrific news.
The Manchester bombings are just the latest set of atrocities that have rocked the peaceful world this year. Salman Abedi has been named as the terrorist who was killed in the blast as he murdered 22 after Ariana Grande concert. ISIS claimed today that one of its fanatics was responsible for the massacre within a ranting message that threatened further attacks on 'worshippers of the Cross'. While the pound was jittery on the news and PM May's Cobra meetings taking priority over her election campaigning, risk appetite soon returned on Wall Street.
Wall Street rallied along with the US dollar when the announcement of Trump's budget plan was taken as a positive. US Treasury's Mnuchin's comments, when he said that he hopes to get tax reform completed this year, initiated a sell-off in t-bills and the 10y-yields took off to 2.2887% to settle circa 1.50% higher for the day. The DXY managed a score through the 97 handle to the highs of 97.41 from a low of 96.80. Gold took a battering and was down -0.69% by the close having dropped from highs of $1,263.88 to $1,250.80 the low, recording a 9.21% gain for the year so far. Sterling was down -0.30% at 1.2961 having lost the 1.30 handle from highs of 1.3034. The cross drifted lower on dollar flows from 0.8675 to 0.8618 the low and ended down -0.2%. The euro was lower by 0.49% despite strong date and the Yen lost out to risk on markets by 0.45%.
"Data releases pointed to healthy Q2 growth in developed economies, with the Markit euro area composite PMI holding at its record high (56.8). The German manufacturing PMI made a record high (59.4) and the US PMI also pushed higher on the back of better services activity. Calls that global growth has peaked look premature based on these indicators" explained analysts at ANZ noting that the S&P 500 index was up 0.3% at the time of writing, while the DAX and CAC 40 closed up 0.3% and 0.5% respectively. "The FTSE 100 edged lower (-0.2%). Oil managed to hold onto recent gains with WTI up 0.7% at $51.5/bbl."
Key events ahead
No major events scheduled for Asia:
Key notes from US session
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.