Forex today: dollar very soft and yields much lower again

Forex today saw a soft dollar and much lower yields with US stocks in a chop and higher oil.

The Qatar tensions seem to have dissipated and markets taking the view that matters will not escalate. The dollar was driven lower in the US session down -0.25% at time of writing while the 10-year yields -1.76% at 2.1434%. 

While the focus stays with the risks around the UK election, a pivotal ECB meeting and Comey testimony on Thursday, in terms of data for today, the US JOLTS Jobs opening were 6.04 m against 5.79 m previous. 

Other news hitting the wires came with US Treasury’s Mnuchin who said that the US imbalance in trade with China is a 'significant concern'. there was also some activity around the peso with US and Mexico reaching a sugar pact, although US producers were not on board. There were polls for the UK elections this week with the  Conservatives to win 304 seats in UK election according to a YouGov election model.  

The euro has eyes on the June 2 high and made a high of 1.1284. The yen was strong and ended the day 109.44 from highs of 110.56. GBP/USD traded between  1.2915-1.2873 and ended the day 1.2902. The CAD was making a fresh spike post the API data ending the day at 1.3450 between a range of 1.3480 and 1.3437 the low. The Aussie consolidated the bullish run on yen strength through the cross after a break of 0.7520, ending the day at 0.7500. The Kiwi was boosted by the milk auction but ended below the 0.72 handle at 0.7180.

The day ahead in Asia

Aussie GDP is the main risk event:

Key notes in US session

• Former FBI’s J.Comey to testify on Thursday – TDS 
• Gold intermarket: a perfect environment for the precious safe haven metal   
• U.S. Commerce Secretary reaches sugar trade deal with Mexico