Daily Afternoon Report 17.05.2017

The dollar continued to drop against other major currencies on Wednesday, as concerns over recent political developments in the U.S. still weighed heavily on the greenback.

The greenback weakened broadly following reports U.S. President Donald Trump shared sensitive intelligence with Russia’s foreign minister in a meeting last week.

The U.S. dollar came under further selling pressure after news Trump asked former FBI Director James Comey to end the agency’s investigation into ties between former White House national security adviser Michael Flynn and Russia.

Markets were still recovering from Trump’s decision last week to fire James Comey and amid congressional calls for an independent investigation of possible Russian interference with the U.S. election.

The claimant count increased by 19,400 in April, compared to expectations for a gain of 7,500 people.

Meanwhile, the average earnings index rose by 2.4% in the three months to March, in line with expectations. Excluding bonuses, wages increased by 2.1%.

Statistics Canada reported on Wednesday that manufacturing sales increased by 1.0% in March, exceeding expectations for a 0.4% rise.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.61% at a fresh six-month low of 97.49.