The Currency Scene:
News, Events, and Stories about currency from around the world.

Asia Pacific Market Open Talking Points

  • US Dollar finds support as risk aversion and Fed rate cut bets cool
  • The British Pound[1] sunk after a dismal round of economic statistics
  • APAC stocks may struggle rising, S&P 500[2] upside momentum fades

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US Dollar Downtrend Pauses With US-Mexico Trade Tension Relief

The US and Canadian Dollars had a solid first day of the week as US-Mexico trade tensions cooled[4], as anticipated. Over the weekend, President Donald Trump announced that the nation will “indefinitely suspend” tariffs on Mexico, sending ripple[5] effects in global benchmark stock indexes as sentiment generally recovered. Haven demand ebbed as US front-end government bond yields climbed.

Gains in the relatively high-yielding US Dollar, which has been battered by rising probabilities of a July Fed rate cut, helped it to outperform against the pro-risk Australian and New Zealand Dollars. Fed funds futures are now pricing in about a 78% chance of a cut from the US, down from 83% by the end of last Friday. While the S&P 500 gapped up and rose, it ended the day back near open (+0.47%) after some losses.

Meanwhile, the British Pound fell, particularly earlier in the day following a set of dismal economic

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