The USD Pushes Higher as PM May Offers to Quit
Rowan Crosby • 1 min read
The USD is continuing to push higher, while US equity markets sold off as the fears over global growth continued to weigh on investors.
For the time being, the focus continues to be on US treasury yields as buyers have continued to look for the safety of longer-dated bonds. The 10-year bond dropped to 2.37 percent from 2.41 per cent, which is still below the yield on the three-month Treasury bill. The US Dollar Index is continuing to move up and is back to the 97.00 level.
With growth concerns being a real worry to investors, there will be much attention on today’s US GDP release, which is expected to show growth of 2.4% YoY, down from 2.6%.
In other news, Brexit concerns have continued to plague the UK, with the latest development being that PM May has offered to quit if a deal can be done.
The remarks came as a new process that will choose an alternative Brexit strategy from eight options, started to get underway in UK parliament. The vote has passed and the focus still remains on how exactly the UK will unwind this mess. The GBP/USD continues to be sold off though.
Asian Session Outlook
There is limited data for the Asian session today, with the only key readings being ANZ Business Confidence and the RBA’s Kent speaking early on.
Business Confidence is unlikely to impact the NZD/USD, however, there is much interest in the number given the backdrop of the overall economy.
There is also still some attention on the NZD/USD after yesterday’s dovish update from the RBNZ. The NZD/USD declined sharply to close under the 0.6800 level and both it and the AUD/USD are feeling some pressure at the moment.