Mueller Grand Jury Report Destroys Dollar and Leaves Sterling Struggling
After a recent report that U.S. Special Counsel representative Robert Mueller has chosen to impanel a jury for his investigation into Russia’s potential interference in the latest elections, the dollar value has seen significant damage. The possibility that there may have been some collusion within the Trump campaign has sent currency values spiraling, and the dip in the greenback further supported an ongoing experience of weak economic data, which left the Bloomberg index lower by under 0.,1%.
The greenback has now reached its lowest point since the middle of June, thanks to the shaky results of the Mueller update. Importantly, the 10-year Treasury yield also saw a significant fall to its lowest state during the same month.
The Rise and Fall of USD and GBP
Previously, the dollars saw an increase to its highest rate in six months against the British pound, which has also struggled to gain any momentum in recent months. Recently, the pound hit its lowest point since November against the Europe, following the decision to keep policies on hold and reduce growth forecasts for the rest of the year. The sale of British currency spilled over into other currency pairs, which helped to boost the demand for the Swiss franc and Yen.
Currently, GBP/USD is trading at a rate 0.6% lower, at around 1.3142 vs 1.3113 which was seen after the stop-loss sell orders moved below the rate of 1.3150. Ahead of the decision made by the Bank of England, the pound had recently achieved an 11-month high against USD currency after the UK services PMI came out ahead of estimates. Now, the pound is down again, and paced by a loss of more than 1% against yen.
Interestingly, growth in the euro has also subsided after setting fresh highs for the session, gaining significantly despite the pound selling problem. Both the Swiss franc and the yen gained against the Euro and USD as cross trades continued to unwind.
The Latest Updates on the Dollar Value
Following the disappointing results of the ISM composite index (non-manufacturing), the dollar fell, though a Bloomberg survey calls for gains of around 180k for the upcoming jobs report. June data suggested that about 22k non-farm jobs were introduced into the mix.
JPY/USD also fell to a fresh low at around 109.86, dropping beneath the interim low point at 109.95 and falling back on a previous rebound. However, residual bids cushioned the drop to a point of 10.9.90. Resistance should be defined by the peak of 110.98 reported on Wednesday.
The latest reports suggest that the EUR/USD cross is trading at around 1.1874, pushing to a session high at 1.1893, seen when demand for EUR/GBP helped to lift the cross pair at an earlier stage. EUR/GBP traded close to the daily high of 0.9049. Additionally, EUR/USD fell to a low at around 1.1831, before bids underneath 1.1830 began to cushion the drop, according to European traders who asked to remain unidentified.
The ISM index (non-manufacturing) for the United States saw a decline of 53.9 vs estimates for a drop to only 59.6 – which only contributes to the overwhelmingly disappointing tone of the latest economic data.