Another positive session for the dollar, which continues to act - somewhat - as a refuge from the political uncertainties that arose in France on June 7 at 9:15pm.

Christine Lagarde has come out of her silence, declaring that the ECB is "attentive" to the situation, but that there is no reason to consider supporting French debt.
And the facts seem to prove her right, as the yield spread between the French ten-year OAT (3.155%) and the German benchmark rate contracted on Monday by 80 basis points compared with Friday (-7.5Pts).
However, this was not enough to give the Euro a fresh boost, as it fell by -0.25% to $1.0725/$.
Let's not forget that the political risk is not only French: the coalition in power in Germany is facing major differences over the budget, and a new government is due to be formed in Belgium", points out Christopher Dembik, Investment Strategy Advisor at Pictet AM.
Economic indicators, particularly those relating to inflation, which are likely to influence the trajectory of central banks' monetary policies, should also continue to have a major impact this week.
Meanwhile, manufacturing activity fell slightly in June in the New York area, according to the local Fed's 'Empire State' survey.
New orders remained stable, while shipments rose slightly. Labor market conditions remained weak, with employment and hours worked continuing to contract.

The pace of input and selling price increases slowed slightly for the second consecutive month. Although current activity remains weak, optimism about the six-month outlook reached its highest level in over two years.
The only cause for satisfaction: the 'general conditions' index gained ten points but remained below zero, at -6.0.

The '$-Index' was unchanged at 105.55, and the 'cable' proved rather resilient: the Pound gave up just 0.1% at $1.2690.
Let's not forget that the UK general election will be held on July 4, and that Richi Sunak and the Conservatives (only 18% of voting intentions, barely half that of Labour at 37%) are in a poor position in the polls, trailing the Liberal Democrats at 14% (their best score ever).

Copyright (c) 2024 All rights reserved.