The Dollar lost a bit of ground yesterday in late trading (after a decent start) and has weakened a tad more overnight. Sterling NEER (Nominal Effective Exchange Rate) hit its high for the month yesterday, the NEER is an indicator of a country’s international competitiveness in terms of the foreign exchange market. No obvious catalyst for the Dollar beyond some profit taking with the Dollar NEER having appreciated 1.1% between Thursday and Tuesday. US macro data were mixed – industrial output growth of 0.7% mom in April was stronger than expected but housing starts contracted 3.7% mom and in the process reversed the gain recorded in March. Not the kind of data which will trouble markets or the Federal Reserve.
Currency market price action remains subdued but there is a fair bit of event risk in June, including:
