Daily Morning Report 22.05.2017

The dollar edged higher Monday but was still close to six-month lows on ongoing U.S. political concerns.

The dollar index was up 0.16% at 97.16 at 03:00 ET.

The Trump administration’s ability to deliver on economic reforms is under question after a series of political scandals.

The U.S. Justice Department appointed a special counsel to probe alleged Russian interference in the U.S. presidential election.

Trump is currently on an overseas trip. He moves on to Israel after visiting Saudi Arabia.

A number of FOMC members are due to speak later in the session.

The odds of a June rate hike currently stand at 74%.

The market largely shrugged off another missile test by North Korea over the weekend.

The dollar was up 0.08% at 111.35 yen. Japan’s trade surplus was lower than expected in April.

The euro edged lower after touching eight-month highs at the $1.12 mark as the euro-zone recovery looks to be gathering pace.

Elsewhere the pound was lower as a poll showed an erosion of the ruling Conservatives lead in the June 8 general election.