Dollar Weakness Seen Across the Board

It has been a relatively quiet morning ever since some of the currencies opened up with a small gap. The theme of dollar weakness has become set in the markets since Friday and this has continued today as well and there are no signs of this abating. The new US President has not helped make matters any easier for the dollar with his speeches and tweets continuing to show his inexperience in the handling of an important responsibility which the Presidency is supposed to be. The market has shown its displeasure to the lack of statesmanship from him by beating up the dollar when it was actually expected to get stronger. The economic data from the US continues to throw up some strong numbers and with the Fed making it clear that it is looking to hike rates in the coming months, the dollar should be enjoying the best of times but the risks and uncertainty surrounding the Trump administration is weighing on the dollar.

This has caused the euro to make a final break through 1.0700 and sits just below 1.0750 as of this writing. The dollar has weakened against the yen as well and it trades just above 113.5 and looks quite weak. Along with the dollar, the CAD has also remained weak due to the expectations of a rate cut from the BOC in the coming months and this has helped the USDCAD pair to consolidate. Gold prices have continued to gain, continuing the trend over the last few weeks, and it trades below 1220 and looks set to move towards 1270 in the short term.

Oil bulls have also had something to cheer about as the weekend news stated that the oil producers have managed to achieve their production cut targets so far and their deal has been progressing well since the beginning of the year. Looking ahead to today, there is no major economic news from any part of the world and so we should see the theme of dollar weakness continue for the day.