On Monday, the 3rd of June 2019, the American Dollar dipped further after witnessing a slump of 0.57 percent on last Friday (May 31st), following St. Louis Fed President James Bullard’s comment over a possible interest rate cut this year to improve inflation in context of a slowing economy.
In point of fact, early in the US trading hours, Bullard had been quoted saying that an interest rate cut “might have been warranted soon”, given the scale of economic risk global trade tensions and a weak US inflation possessed.
Followed by Bullard’s comment, investors had been found seeking safety on Japanese Yen and Swiss Franc, meanwhile a wave of US Dollar sell-off had taken place and forced the American currency to post a plunge of 0.40 percent to 97.20 at the session closure.
While this report was being prepared, June 4th, GMT. 01.25, US Dollar had been losing further momentum and residing at 97.13, well on-course to post a plunge for third consecutive day in a row, while safe-haven currency Swiss Franc had gained 0.99 percent on Monday’s (June 3rd) market closure to wrap up the day at $0.9910, its best intra-day gain since Jan.
24th, 2018. Adding that an American currency ride would likely to remain bumpy until G20 summit later this month on Japan, a global head of foreign exchange strategy at TD Securities, Mark McCormick wrote at a client note, “Though we think the recent warning shot towards Mexico could be resolved, the road ahead on the global trade front is likely to remain challenged until the G20 later this month”.