Dollar on Course for Biggest Monthly Loss in 2 Years

OVERVIEW

  • 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.

HIGHLIGHT

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. 

US DOLLAR

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.

BRITISH POUND

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.