Dollar Bears Return, Euro Rises to Five-Week High
The dollar fell versus all Group-of-10 currencies as hedge funds added to short exposure amid signs of escalating US trade tensions.
Last week’s reduction in dollar shorts amid month-end flows weighs as June trading gets underway, Europe-based traders say.
The Bloomberg Dollar Spot Index falls as much as 0.5%, while the yield on 2-year Treasuries climbs 2bps to 3.92%.
China on Monday accused the US of violating their recent trade deal by unilaterally introducing new discriminatory restrictions, rebuking Donald Trump’s claim that Beijing breached the consensus reached in Geneva last month.
EUR/USD rallies by 0.8% to 1.1437, highest since April 23.
The Scandinavian currencies lead G-10 gains; USD/NOK down 1.2% to 10.0926.
High-beta currencies better bid is market’s theme since the Asia open: trader.
USD/JPY down a third day, slips 0.9% to 142.80; take-profit bids seen at 142.50-80: trader.
NZD/USD rises 1.1% to 0.6027; contraction in Chinese factory activity slowed in May from the month prior.
GBP/USD up 0.7% to 1.3557; figures from Nationwide Building Society showed UK house prices unexpectedly rose in May.
Source: Bloomberg
