Donald Trump had another major impact on the currency markets yesterday, with the US dollar driven down against a basket of currencies on the back of news that the President had shared highly classified information with Russia’s foreign minister.
The dollar fell to its weakest level against the euro since Trump’s election in November whilst staying in a narrow range against a weaker sterling. Lawmakers in the US are understandably alarmed by today’s reports which Trump is not denying, especially coming on the back of the recent shock firing of former FBI Director Comey.
Housing data out of the US didn’t do much to help the US dollar, with weaker-than-expected figures suggesting the market was starting to slow down. On a brighter note, US industrial production data showed a rise at the fastest pace for three years.
The day is fairly light in terms of economic data, with only the oil inventories set for release. However, economic data of late has not been the main factor driving price action.
The current dollar trend has been lower and the market will be keen to see where it closes as key psychological levels are being broken.
The remainder of the week is also quiet in terms of economic data, with only the jobless claims on Thursday to note.
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