After spending most of Monday down against the euro, the greenback is strong across the board as its peers deal with disappointing data. The dust around the political upheaval in the U.K. has settled with no immediate rebellion to Prime Minister Theresa May’s leadership, allowing the pound to breathe.
Euro shot back down
The EUR/USD pair ran up against 1.18 Monday, but was then rejected off of USD strength and worse-than-expected economic sentiment.
The dollar was able to rise off of higher U.S. Treasury yields and a calm in the trade war as the White House focuses on its Supreme Court Justice pick.
Tuesday morning, the German ZEW Economic Sentiment for July came out worse than expected at -24.7, compared to estimates of -18.0. EUR/USD fell to 1.172 after the economic release before falling even further to 1.171 where it hovers.
Sterling swayed by data as May dodges a bullet
Prime Minister Theresa May has so far been able to weather the storm of cabinet resignations and the focus Tuesday is on some mixed data out of the U.K.
The pound was able to climb back up from the lows yesterday of 1.318 to 1.329, but then worse-than-expected manufacturing production caused it to slide lower.
GDP for the month of May met expectations of 0.3% growth.
USD/JPY at multi-week high
The dollar was able to advance on the Japanese yen off of rising U.S. Treasury yields. The USD/JPY pair is trading at its highest levels since May 21.
USD/JPY has climbed nearly 100 pips in the past 24 hours from 110.4 to around 111.3.