Trump’s Political scandal disturb the Market
A risk-off mood dominated the overnight session amid growing concern over the turmoil engulfing the Trump administration, as fresh allegations add to deepening political scandals in Washington, the latest coming from Tuesday’s New York Times report citing former FBI director Comey’s memo which raises the possibility of obstruction of justice, an impeachable offense. The dollar, already in retreat after a report that the U.S. president shared terrorism intelligence with Russian officials, decline again and the Bloomberg Dollar Spot Index dropped for a sixth day, while the VIX index surged over 10% in early trading
In currencies, the Bloomberg Dollar Spot Index was slightly down in early trading, back to the lowest level since Nov. 8. The yen rose to 110.78 per dollar, after climbing 0.6% on Tuesday. The euro rose to $1.1162, extending Tuesday’s 1% surge. This has seen EUR/GBP pierce the 0.8600 level, but with the UK wage date this morning more or less in line with expectations, Cable bulls are pressing on the highs again in the quest to push on 1.3000.
GBPUSD – The pound remains to consolidate at the highs at the top of the range, with the 200-DMA acting as a support for the time being. The negotiations on Brexit as well as the June 8th Elections are set to weigh on the currency in the long term.
USDJPY – The main reason behind the fall of the USDJPY is because of the Trump Political Scandal and the Firing of Comey. Political instability has increased the demand for safe assets; in turn, the USDJPY has dropped towards the 110.78 were a bounce from there is not ruled out.
EURGBP – The Euro has been on the increase as well as the GBP, however, the speed at which the Euro is increasing far outpaces the GBP and that is reflected in the EURGBP where the currency pair currently battles the 200-DMA and 61.8% Fibonacci levels situated between 0.8597-0.8607 respectively.
AUDUSD – Even though the AUD has rallied in recent days in an attempt to break
above the 21-DMA situated at 0.7450, it pair has wavered as headwinds from the Iron Ore and Mining still spelling trouble for the Australian Currency.
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***Information contained in this news letter are gathered from third parties and should not be regarded in any way as trade advice or recommendations by CM Trading. CM Trading does not recommend or advise traders or investors in their decision making, but merely provides information from the market for its clients as additional information being made available as per the events occurring in the financial markets.
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