The dollar is still dropping this morning from Thursday’s weak inflation data and retreating U.S. Treasury yields. Meanwhile, President Trump sets a date for his meeting with North Korea’s Kim Jong Un.
Dollar down, oil up
The euro and the pound are taking advantage of the greenback’s weakness, making some much-needed advances as we head into the weekend.
The dollar has had nearly two weeks of strength against its major peers, but consumer price index data released Thursday has exposed a weakness. Combining that with declining U.S. Treasury yields has allowed the EUR/USD pair to make a run at regaining 1.20 and GBP/USD to recover from the dovish Bank of England meeting.
USD/JPY is retreating back toward Wednesday’s low, trading around 109.25 after making a run at 110 Thursday morning.
Meanwhile, oil prices continue to push $71.5 per barrel for the West Texas Intermediate off of the U.S. withdrawal from the Iran deal.
What a Draghi
The EUR/USD pair is trading up around 1.195 as the euro advances on the USD weakness from disappointing CPI data.
The pair is finally starting to regain some traction after more than a week below the 1.20 mark. USD strength dragged the pair as low as 1.1822 Wednesday.
We’ll see if the euro can continue to rise this morning as European Central Bank President Mario Draghi speaks. Draghi is not exactly known for his hawkish commentary. If he shows concern for the recent weakness in the economy, it could discredit the euro’s advance.
It’s a date
After welcoming home three American hostages from North Korea earlier this week, President Trump has now announced the time and place for his meeting with Kim Jong Un.
The summit, to be held June 12 in Singapore, is a big win for Trump who has been seen during his tenure walking away from agreements with other countries rather than forming them. But his success so far with North Korea is something his predecessors couldn’t accomplish.
Many are crediting the tough sanctions on North Korea pushed by the Trump administration as the reason Kim is so willing to negotiate.
Poor jobs data lifts USD/CAD from lows
The USD/CAD pair was trading at three-week lows this morning off of USD weakness, but worse-than-expected Canadian jobs numbers for April are lifting the pair back up.
Canada reported a loss of 1.1K jobs for the month compared to a 14.7K expected gain. However, wages for permanent employees grew. The unemployment rate held steady at 5.8%.
The pair was trading around 1.272 before the release and is now up around 1.277.