logo
Plus   Neg
Share
Email

Dollar Trading Mixed Ahead Of Summit

eur-usd2-061118-lt.jpg

The dollar is turning in a mixed performance Monday afternoon. Traders are in a cautious mood ahead of the historic summit between President Donald Trump and North Korean leader Kim Jong Un on Tuesday.

Ahead of the meeting, Secretary of State Mike Pompeo indicated the U.S. is prepared to offer North Korea "unique" security assurances in exchange for the complete, verifiable and irreversible denuclearization of the Korean peninsula.

Italian Economy Minister Giovanni Tria said that the new government has no plans to leave the euro and is seeking to boost growth through investment and structural reforms instead of deficit spending.

"The position of the government is clear and unanimous. There is no question of leaving the euro," Tria said to Italian newspaper Corriere della Sera on Sunday.

"The government is determined to prevent in any way the market conditions that would lead to an exit materializing. It's not just that we do not want to leave, we will act in such a way that the conditions do not get anywhere near to a position where they might challenge our presence in the euro."

The dollar dipped to an early low of $1.1820 against the Euro Monday, but has since rebounded to around $1.1785.

The buck climbed to an early high of $1.3344 against the pound sterling Monday, but has since eased back to around $1.3375.

UK industrial production decreased unexpectedly at the start of the second quarter, figures from the Office for National Statistics showed Monday.

Industrial production fell 0.8 percent month-over-month in April, reversing a 0.1 percent rise in March. It was the first decline in four months.

Meanwhile, economists had expected a stable 0.1 percent increase for the month.

The United Kingdom's visible trade deficit in April was the biggest in over one-and-a-half years, data from the Office for National Statistics showed Monday.

The trade in goods deficit widened to GBP 14.035 billion from GBP 9.248 billion a year ago and GBP 12.003 billion in March. The latest figure was the biggest since September 2016, when the deficit was GBP 14.254 billion. Economists had forecast a shortfall of GBP 11.4 billion.

The greenback has risen to around Y110.050 against the Japanese Yen Monday afternoon, from an early low of Y109.380.

Core machine orders in Japan soared a seasonally adjusted 10.1 percent on month in April, the Cabinet Office said on Monday, coming in at 943.1 billion yen. That topped expectations for a gain of 2.4 percent following the 3.9 percent decline in March.

The M2 money stock in Japan was up 3.2 percent on year in May, the Bank of Japan said on Monday, coming in at 1,003.2 trillion yen. That was unchanged from the April reading following a downward revision from 3.3 percent.

The M3 money stock was up 2.7 percent on year to 1,331.3 trillion yen - again unchanged from the previous month following a downward revision from 2.8 percent.

by RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com

Market Analysis

Follow RTT