Dollar Slumps, Euro Gains After Ukraine Summit
The dollar slid against all Group-of-10 peers and the euro outperformed on optimism of higher defense spending in the region, with leaders from the UK, France, Italy and other countries gathering in London to assemble what Britain called a “coalition of the willing” to secure Ukraine.
The Bloomberg Dollar Spot Index falls 0.6% and extends losses early in New York trading; coming off first weekly gain since January
Trump administration’s looming tariffs on Canada, Mexico in focus for traders; overnight implied vol on BBDXY rises to highest in nearly three weeks at 10.17%
TD Securities is tactically bullish USD in the near-term and bearish over the next six to 12 months, Mark McCormick, global head of FX strategy, told Bloomberg Television.
EUR/USD gains as much as 1.1% to 1.0497 day’s high, largest intraday jump since Jan. 20 and start of new US Trump administration.
JPY one-month risk reversals remain near most bullish since December, trading at around 157 basis points in favor of USD/JPY puts over calls.
GBP/USD rose as much as 1% to 1.2703, gauge’s biggest intraday jump since Jan. 24.
Source: Bloomberg
