The dollar stabilises after a tough start to the week - Monex Europe

The dollar stabilises after a tough start to the week - Monex Canada

CAD Canadian May inflation data, published yesterday, largely matched expectations, showing all-items price growth of 1.7% YoY, while core median and core trim inflation both slipped to 3.0%. That said, limited signs of inflationary passthrough will likely be a point of note for the BoC, if echoed in the June data. For now though, we think the Governing Council remains in limbo regarding the July rate decision, with recent evidence failing to co…

The dollar stabilises after a tough start to the week - Monex Europe

USD Tuesday saw the dollar stabilise after Monday’s sharp decline. The DXY index is now trading around 98 as of writing, some distance from Monday’s high of 99.4. Admittedly, an overreaction to Powell’s congressional testimony yesterday briefly threatened to send the pair lower before traders came to their senses. But in our view, this is still indicative of a market biased to sell the dollar, even after events of the past fortnight proved that …