Dollar Slumps Broadly as Trump Probe Announced

18 May 2017 2:00:00 PM

Despite a short rally, the US Dollar remains under pressure and was broadly lower. Safe haven demand was also markedly higher in the aftermath of yesterday’s announcement from the US Justice Department that a special investigator has been appointed. Robert Mueller, formerly the head of the FBI under both president’s Barack Obama and George W. Bush, will head the investigation into possible collusion with Russia by the Trump administration. After the news, the US Dollar quickly took a nosedive and recorded its single worst daily decline since July 2015.

As reported at 11:09 am (BST) in London, the USD/JPY was trading at 110.432 Yen, down 0.17%; the pair had earlier hit a low of 110.212 Yen. The GBP/USD was higher at $1.3043, up 0.50%; the pair’s daily range is from $1.29363 to $1.30479.

Markets turn to Draghi for Clues

In the eurozone, markets are waiting for the release of the European Central Bank’s policy monetary policy accounts statement; this is generally an overview of the Eurozone’s economy, monetary developments and financial policies as seen through the view of ECB’s general council. Then later, Mario Draghi, head of the ECB is due to speak and markets will be anxious to hear whether or not he plans to rein in more stimulus. Currently, the EUR/USD is trading lower at $1.1124, down 0.37%.

Barbara Zigah is a freelance journalist living in Ghana, who specializes in Forex-related content; her online work has appeared in the IB Times, NASDAQ, Benzinga, and Seeking Alpha.

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