The Dollar, which had rallied yesterday in tandem with a 2.6% fall in the S&P 500, has been treading water against most major currencies in today’s session despite US equities being up at time of writing. Markets it would seem are inclined to believe that the Dollar’s trend is ultimately downwards. US macro data out today have admittedly given little for investors to work with. Personal income fell by less than expected in May
(-4.0% mom) but personal spending rose by a smaller-than-forecast +8.2 mom.
Sterling is underperforming slightly today, with the GBP/EUR cross at the low-end of a narrow range in place since 19th June and GBP/USD is trading below 1.24 for the first time since 22nd June. Sterling’s gain in the wake of stronger-than-expected composite PMI data released on Tuesday have faded quickly. Whether the planned further easing of national lockdown rules in early July will be able to give Sterling back some shine remains to be seen.
