It was a Dollar strength day yesterday,
after it dropped to 6.5 month lows earlier on Monday. The main reason for its comeback was attributed to the rise in Treasury Yields. The Dollar also managed to bounce versus the EURO which reached 1.1268 on Monday however has now stabilized at 1.12.
• Investors are now turning their focus toward the Federal Reserve's monetary policy stance. Minutes of the Fed's latest policy-setting meeting are set for publication at 1800 GMT on Wednesday.
• Meanwhile, China’s debt was downgraded overnight by Moody’s citing expectations that the financial strength of the world's second-biggest economy would erode in the coming years.
• As a result, the AUDUSD which trades in correlation to China’s economy, dropped 0.20% to 0.7440
• Elsewhere, the CAD stood steady at 1.3518 per dollar after touching 1.3457 overnight, its strongest in a month. The GBPUSD was nearly flat at 1.2965, with the market awaiting further developments in Britain's suspended election campaign after the suicide bombing in Manchester.
• GOLD prices retreated from a 3 week high on the back of the Dollar strengthening, but also on expectations that the FED will hint on rate increased today during the release of the FED minutes from the May meeting.
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