The U.S. Dollar mostly kept familiar ranges, but saw losses to the Nordic currencies such as Norwegian Krone and Swedish Krona.
Part of the half percent advance for these two may lie on traders shedding away Euro positions based on downward equity markets as well as a recent streak of losses for the shared currency. The buck is likely going to stay afloat Euro until we see the results from European Union Parliamentary elections, which start today and end this month throughout the member nations.
On the trade front, the technological bans may continue as the U.S. administration may consider several other Chinese companies as targets of sanctions. Naturally, this is spreading fears of a potentially harmful sort of “Tech Cold War” that would further threaten changing the dynamics of supply chain management. As the greenback plays somewhat of a safe-haven we continue to adjust to stagnant flows as result of these renewed and constantly reinforced trade concerns.
What to Watch Today…
- FOMC Minutes 2PM
The Euro remains subdued and cannot find much of an excuse to get away from its recent rut. No data today means that once more the currency will go with the flow of trade news and any details that may emerge from the Fed Minutes later today. Focus for the rest of the month will be on the period of voting in each EU-member country for the EU parliament, which sits 751 representatives.
A new chosen parliament will provide better guidance about how to feel regarding the sustainability of the continental agreement, since many candidates running represent national factions that are looking for ways to either integrate less or separate more. At least Consumer Confidence improved in the bloc, though still in negative territory, and there is a sense of worry that new incoming members could want to re-shape the openness the continent is opted to have among nations.
The Pound is trading in much weaker ranges, close to the very worst of the year. While Prime Minister Theresa May spoke yesterday about her plan to persuade Labour Party members to add votes to her Brexit deal, Sterling climbed rapidly, however this all collapsed once leaders from the main parties quickly came out in response: same deal, different package, not passing.
May even proposed that her new deal, if passed by Parliament, could be used in a second referendum asking to accept the exit plan or just not leave at all. Hope for May getting anything done is basically completely gone and it seems it is now just a matter of time passing, the vote failing, May meeting her party powers-that-be, and being forced to resign.