|Fed minutes loom||Brexit sticking around|
|Equities seesaw||New US tax laws|
The dollar has found renewed buying interest ahead of the FOMC minutes due to be released later today. Investors and economists will be looking to see any hint of hawkish comments after the surprisingly dovish tone Yellen had last week. Based on market movements right now investors are expecting at least some upbeat news to come out of the Fed minutes.
For the UK, Brexit just won’t quit. A new poll shows that the split between the stay and leave parties is closer than ever. This has renewed selling pressure on the pound, and to a lesser extent the Euro, as investors worry about the future of the EU. The US Fed minutes are also weighing somewhat on these currencies as we for their release.
In other news the US has instituted new tax laws that aim to stop tax inversion by companies with overseas interests. This has effectively killed the Pfizer/Allergen merger and is considered a “win” for President Obama. This hasn’t affected US equities too much, which point to a flat open, but is nonetheless concerning for companies as a whole.
EURUSD: Euro is down this morning on uncertainty surrounding Brexit and US Fed minutes.
GBPUSD: The pound is down primarily on Brexit concerns as new polls suggest closer than ever votes.
AUDUSD: Aussie dollar is close to flat this morning trending lower ahead of US Fed minutes.
USDCAD: Canadian dollar significantly weaker ahead of US Fed minutes.