The greenback gained on Monday's session to hover above one year low versus a basket of global currencies, the gains in the dollar was limited by rising political uncertainty and the release of mixed economic data. However, the dollar found support from a weaker euro after downbeat economic data weighed on the currency.
Reports emerged in Washington that the newly appointed special counsel Robert Mueller is going to investigate private business dealings of United states president Donal Trump, Jared Kushner, and other acquaintances.
Furthermore, senior advisor and son-in-law of President Donald Trump Jared Kushner said that he didn’t collude with any Russian officials he also added that no one from the trump campaign team conspired with any Russian officials.
Regarding economic data, Markit's Manufacturing and services flash survey showed a better than expected reading; Markit's Manufacturing came at 53.2 in July compared to expectations of an unchanged figure of 52.0. Services PMI showed a reading of 54.2 also beating market expectation. On the other hand, Existing home sales for the month of June showed a dropped in sales of used home as tight supply along with higher home prices weighed on activity. Existing home sales fell by 1.8% in June compared to March, to a figure of 5.52 million units as per National Association of Realtors.
The US Dollar Index, which measures the strength of the US Dollar against a basket of major currencies ended Monday’s session in positive territories as the greenback found support from a weakness in the euro intra-day and upbeat U.S Markit manufacturing and services flash surveys data. Trading slightly above 13-month lows the dollar index edged higher by 0.05% to trade at 93.99 at the close.
Elsewhere in Great Britain, the sterling pound gained against the greenback for the second consecutive session in a row amid weakness in the dollar, the ‘’Cable” rose despite the IMF changing UK GBP growth to 1.7% from 2.0%. The GBP/USD advanced 0.25% to settle at 1.3027 at the close.
Meanwhile, the European Euro lost in Monday’s session versus its dollar counterpart; The euro fell amid the release of downbeat Manufacturing PMI and Composite PMI in France, Germany and the Euro Zone the drop in the currency was limited by the overall weakness in the greenback. The EUR/USD fell by 0.18% to settle at 1.1642.
Furthermore, in Japan, the Japanese Yen edged higher versus the dollar to extended its gains for the fifth consecutive trading sessions versus the greenback, the Yen continued to advance amid rising political concern in the United States. The USD/JPY edged lower by 0.04% to trade at 111.08 at the close.
Meanwhile, Commodity Based currencies ended Monday’s session on mixed notes as the Aussie dollar gained, while the Kiwi dollar lost on profit taking. The AUD/USD gained 0.25% to trade near 2-year highs at 0.7923, meanwhile the New Zealand Dollar dropped on profit taking after advancing for the four consecutive sessions as. The NZD/USD fell by 0.21% to end the session at 0.7438.
Oil dependent currency Canadian Dollar outmuscled the greenback for the fifth consecutive session as loonie dollar hit new 14-month highs; the loonie dollar found support after economic data showed that Canadian wholesale trade beat market expectation in May along with higher in Oil prices. The USD/CAD fell by 0.24% to settle at new 14-month highs at 1.2509.
© Copyright 2017
The information contained in this publication is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Any opinion offered herein reflects Gotinsiders.com current judgment and may change without notice. Users acknowledge and agree to the fact that, by its very nature, any investment in shares, stock options and similar and assimilated products is characterized by a certain degree of uncertainty and that, consequently, any investment of this nature involves risks for which the user is solely responsible and liable.