The dollar index was higher on Tuesday morning as the euro and British pound faced political pressure as UK Prime Minister Theresa May’s lead over the opposition narrowed to just six percentage points. The polling report is concerning for the Conservatives who are losing essential ground before the UK’s June 8th election.
The sterling dipped 0.21 percent to $1.2812 as of 5:42 a.m. GMT, heading towards three-week lows that were hit on Friday. The euro was down 0.34 percent to 1.1126. Europe was weighed by concerns about Greece’s financial situation after an announcement on Monday that its creditors need to reach a deal on debt relief at the June meeting of euro zone financial ministers. Greece’s bailout payments are paramount in order for the country to meet existing debt repayment scheduled for July. A default would reopen discussions of a Greek exit from the European Union, which could further pressure the common currency. On Monday European Central Bank President Mario Draghi also failed to increase optimism as he confirmed the need for “substantial” stimulus despite improved growth in the region.
Both the dollar and the euro slipped against the yen, with the euro down 0.68 percent to 123.35 and the dollar down .31 percent to 110.89. Traders are now eyeing data expected out later on Tuesday including French GDP data and German and U.S. inflation data for May.
On the commodities markets, gold inched higher to $1,268.34 on Tuesday while U.S. WTI crude futures dipped 0.2 percent to $49.77 per barrel. Global benchmark Brent crude dipped 0.4 percent to $52.09 per barrel.