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May 22, 2018
|May 22, 2018|
The US Dollar's recent rally took a breather as traders booked profits in subdued trading overseas. An easing in tensions between the US and China over trade bolstered the Dollar, but gains were limited after a pull-back in US Treasury yields from earlier 7 year highs. The US currency hovered near 6 month highs against the Euro. Political uncertainty in Italy continues to weigh on the single currency. The newly formed coalition, involving anti-establishment and Far right parties, proposed a little known law professor as their Prime Minister. The English Pound edged higher after a top Bank of England official offered an upbeat outlook for future interest rate increases. BoE's Vlieghe said that policy rates are set to increase by 25 to 50 basis points every year over a 3 year period. Surging oil prices boosted the Aussie Dollar to 1 month highs. US stock futures show a higher open this morning in New York. Currency market's near term focus will be tommorrow's release of the minutes from the US Federal Reserve's latest policy meetings.