The dollar held its gains on Wednesday evening session after rebounding from 11-week lows, as peers such as the euro, pound and commodity currencies sagged. Data released yesterday showed U.S. consumer prices barely rose in May, pointing to moderate inflation that together with a slowing economy increased pressure on the Fed to lower interest rates this year. The euro took a hit after U.S. President Donald Trump said yesterday he was considering sanctions over Russia’s Nord Stream 2 natural gas pipeline project and warned Germany against being dependent on Russia for energy.
Sterling slipped as British lawmakers defeated an attempt led by the opposition Labor Party to try to block a no-deal Brexit. Investors are concerned the next prime minister could put Britain on course for a no-deal divorce with the European Union.
The Australian Dollar will be nervously eyeing upcoming employment data for May. Australian jobs reports have recently picked up in importance after the RBA mentioned it is closely watching the labor market after delivering last week’s rate cut. A dismal outcome can add fuel to current near-even odds of a cut in July, sending the Aussie lower.
Regardless of economic data released by US & Europe, major focus will be around geo-political tensions among US against Iran & Russia.