USD Graphic Rewind 07.01
USD INDEX GRAPHIC REWIND
A weak end to the second quarter saw the dollar maintain its bid tone as risk aversion continues to find new fodder to chew over. The weak ADP employment report early in the US session, followed by concerns regarding Spain's rating at Moody's weighed heavily on sentiment. Turning to the Asian session focus rested on key data out of China and Japan, the Tankan showed surprising strength and turned positive for the first time in two years. However, this was not enough to slow the dollar onslaught following the weaker than expected Chinese PMI confirming investor fears that growth is indeed slowing in China.
Looking ahead, somewhat optimistically traders are talking about a new quarter and new sentiment, this seems unrealistic since the ongoing concerns about a double-dip in the US and China haven't disappeared. Expect the dollar to maintain its strength and push higher as storm clouds continue to gather over-head.
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