Forex today was strong trading the aftermath of the ECB and a market doused with dollar weakness on the political front.
Firstly, the euro eas bid on a mixed ECB statement and comments from Draghi that accelerated Bund yields as well on the back of the mention of an autumn window for reviewing QE tapering.
On the political front, Trump is under investigation. According to a recent report by Bloomberg, Special Counsel Robert Mueller, who is investigating the ties between the Donald Trump campaign and Russia in last year’s election, is now looking into a broad range of Trumps' business transactions. The dollar subsequently tanked. DXY is -0.49% into the close while US 10 years are -0.24% at 2.2642, recovering in the latter part of the session as did the dollar.
Stocks took USD/JPY down on the news, with the Yen now flat n the day having been up at 111.48 vs a low of 112.42 (BoJ's bullish growth picture was yen supportive o/n). GBP/USD was subdued with the euro perky and EUR/GBP keeping a lid on the pound below the 1.30 psychological level. The Aussie has the market's attention, with metals supportive and eyes remain on the 0.8000 level despite the shallow pullback o/n to a few pips below the 0.79 handle. The Kiwi cleared November's high with eyes on the monthly cloud base & 2016 highs but lacking impetus from the upcoming session.
Key events coming up in Asia
- NZD Visitor Arrivals (YoY) (Jun)
- RBA Assist Gov Debelle Speech
Key notes from US session
Mueller expands probe to Trump business transactions - Bloomberg
ECB: a call for a September tapering announcement - Nomura
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