Daily Morning Report 08.02.2017
The dollar remained moderately higher against other major currencies on Wednesday, as political uncertainty in the U.S. and Europe continued to dominate market sentiment.
EUR/USD slipped 0.27% to 1.0649, the lowest since January 30.
The euro remained under pressure amid concerns over the possibility of a Brexit or Trump-style shock result in France’s upcoming presidential election.
Worries over elections in the Netherlands, Germany and possibly Italy, as well as the ongoing row over Greece’s bailout added to concerns over political risk in the euro area.
Dovish remarks by European Central Bank President Mario Draghi, who on Monday downplayed calls for the bank to scale back its stimulus program, also weighed.
Meanwhile, sentiment on the greenback remained supported after Minneapolis Federal Reserve Bank President Neel Kashkari said on Tuesday that the U.S. central bank should keep monetary policy moderately accommodative.
The comments came a day after Philly Fed President Patrick Harker said he would support hiking rates in March.
Elsewhere, GBP/USD edged down 0.12% to trade at 1.2493.
USD/JPY held steady at 112.34, off the previous session’s more than two-month lows of 111.57, while USD/CHF rose 0.21% to 0.9996.
The Australian dollar was higher, with AUD/USD up 0.10% at 0.7635, while NZD/USD held steady at 0.7303.
Meanwhile, USD/CAD edged down 0.19% to trade at 1.3161, off Tuesday’s two-week high of 1.3215.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.18% at 100.57, just off Tuesday’s one-week high of 100.69.