Dollar on Course for Biggest Monthly Loss in 2 Years


  • GBP weakens as the EU says no to special financial services deal.
  • EUR supported by stronger core inflation data.
  • ADP reports 234k jobs were added in the private sector last month.
  • UK consumer confidence rises unexpectedly, outlook still soft.
  • AUD slips after inflation weaker than forecast.
  • BoJ signals no immediate end to stimulus.


The struggling US Dollar is on track to post its biggest monthly decline in nearly two years as investors ramp up bets that a continued hawkish stance from the Federal Reserve won’t support the Greenback against the backdrop of a pickup in global growth. 


The Dollar has ended the month near its lows despite the broadly positive economic data. There are expectations that the Federal Reserve will maintain a hawkish tone when they meet later today.


The Pound has had a fantastic start to the year and is on course to finish the month almost 5% higher versus the US Dollar, just shy of its highest levels since the Brexit vote. The Pound initially fell around 0.5% this morning following news that the European Commission officials have rejected the City of London's proposal to strike a post-Brexit free trade deal on financial services, dealing a major blow to the UK’s hopes of keeping full access to EU markets for Europe's largest financial center.