U.S. Dollar Losses Yesterday Have Been Mostly Sustained

The US dollar is mostly in narrow ranges around little-changed levels. Despite the slightly-stronger-than-expected May UK GDP (0.1%), sterling is among the heaviest of the G10 currencies.

There seems to be a nervous calm in the foreign exchange market. The US dollar (DXY) is mostly in narrow ranges around little-changed levels. The euro, for example, is in about a 15-tick range, and the greenback is Summary - The US dollar is mostly in narrow ranges around little-changed levels.

Despite the slightly-stronger-than-expected May UK GDP (0.1%), sterling is among the heaviest of the G10 currencies and is testing $1.35 late in the European morning. - Helped by the continuing narrowing of the US two-year premium over Canada, CAD extended its recent gains yesterday and reached its best level in a month. The greenback has held onto most of yesterday’s gains and has been confined to about a CAD1.4035-1.4055 range so far today.

- The broadly weaker dollar was also reflected in the offshore yuan, which rose to its best level since June 18. The dollar is holding above about CNH6.7650 today.

- The large Asia-Pacific bourses fell today, with the notable exception of Hong Kong and the mainland shares that trade there. South Korea’s Kospi slid nearly 6.4%.

- Europe’s Stoxx 600 is off nearly 0.5%, which more than offsets the net gain over the past three sessions. US index futures are trading heavier. Marc Chandler has been covering the global capital markets in one fashion or another for 40 years, working at economic consulting firms and global investment banks.

A prolific writer and speaker he appears regularly on CNBC and has spoken for the Foreign Policy Association. In addition to being quoted in the financial press daily, Chandler has been published in the Financial Times, Foreign Affairs, and the Washington Post. In 2009 Chandler was named a Business Visionary by Forbes.

Marc's commentary can be found at his blog (www.marctomarket.com) and twitter www.twitter.com/marcmakingsense

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