By XE Market Analysis
The Dollar has continued to trade with a softening bias. The USD index (DXY) posted a four-week low at 94.61 while EUR-USD concurrently lifted to four-week highs just above 1.1700. The U.S. currency also posted losses against a slew of other currencies, including making a six-week low versus Sterling. USD-JPY, in contrast, has remained relatively steady, continuing an oscillation of 111.00 for a third consecutive session, holding below the three-week high that was printed on Friday at 111.48. Yen crosses have been more buoyant, with EUR-JPY and AUD-JPY, for instance, posting respective four- and three-week highs. The Yen's overall weakness has been concomitant with the S&P 500 closing at a record high yesterday, and while the bullish vibe wane in the Asian PM session and during the European AM, the MSCI's benchmark world share index still managed to eke out a fresh six-month high. The U.S.-Mexican trade deal, although a breakthrough and announced to much fanfare by President Trump yesterday, is in the White House's own words a "preliminary agreement in principle," and the deal still needs to be approved by both Congress and Mexico. Regarding the U.S.-China trade situation, Trump said that "it's just not the right time to talk right now." Concerns about the economic policies of the populist Italian government also resurfaced, though this did little to halt the Euro's ongoing ascent. Aside from EUR-USD gains above 1.1700, EUR-JPY and EUR-GBP, for instance, posted respective four-week and eleven-month highs today.
