020 7898 0500Despite the fact that US Treasury yields pushed through the 3% barrier yesterday, the dollar’s performance was rather subdued. Indeed, it actually weakened against the pound and euro It will be interesting to see what happens to EUR/USD in the aftermath of the ECB meeting which takes place on Thursday.
The main release of note from the US yesterday, was new home sales for March. This increased by 4% from the previous month to hit 694,000 which was far better than the 625,000 expected. We also saw the CB consumer confidence for April beat expectations at 128.7 when 126 had been forecast.
Meanwhile, Trump gave a speech after meeting with the French President, Emmanuel Macron. He said that trade with France is complicated because of the European Union which has ‘unacceptable’ trade barriers. He did say he would prefer to deal directly with France on trade which seems unlikely, but he also said that there was a ‘very good chance’ of a deal with China.
It is pretty quiet for US economic data today, but we should get more reaction to what Trump said and it will be interesting to see what happens to Treasury yields throughout today.
