FX Handover: Dollar Bounces on Hawkish FedSpeak, Kiwi King Ahead of RBNZ

See a summary of the top FX themes and trends from today's US session!

  • The US dollar recovered its losses after Fed voter Bullard (dove) downplayed a 50bps rate hike next month. Fed Chairman Powell reiterated the less-dovish sentiment, noting that the central bank should not bow to “political interests.”
  • US New Home Sales (May) fell to a five-month low of just 626k, despite falling mortgage rates. Conference Board Consumer Confidence data (June) also missed expectations at 121.5 vs. 131.0 expected.
  • Jeremy Hunt, Boris Johnson’s last competitor to be the next UK PM, called October 31 a “fake deadline” for Brexit. The final vote is scheduled for July 22, with BoJo still the prohibitive favorite despite some recent gaffes. The pound was the weakest major currency on the day.
  • The kiwi was the strongest major currency ahead of the RBNZ’s meeting in tomorrow’s Asian session.
  • Gold rose for its sixth straight day, peaking near 1440 before pulling back in the US session.
  • Friday’s G20 meeting in Osaka will be a major event for markets – see our full preview here.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.