The US dollar has clearly entered a short-term downward trend against a basket of currencies. In particular, the dollar fell more than 3% against the pound since Theresa May’s call for a snap election on Tuesday.
Furthermore, the greenback is testing longer-term support and resistance levels as there’s uncertainty surrounding future interest rate hikes in the US. Currently, two more hikes this year are priced in but there could be fewer or more.
Tomorrow is set to be a very quiet day in terms of data, with only crude oil inventory data due for release.