Dollar Set for Longest Monthly Slide Since 2017
A Bloomberg gauge of the dollar fell in month-end trading and headed for its longest run of monthly losses in eight years as investors considered the latest version of President Donald Trump’s massive fiscal package working through Congress. Trader focus also turns to the release of the US jobs report on Thursday.
The Bloomberg Dollar Spot Index down 0.3% and set for a 1.9% loss in June; sixth straight losing month is longest streak since 2017
ICE US Dollar Index, meanwhile, down more than 10% in 2025, set for worst first half since 1973
US data due this holiday-shortened week for US traders include ISM manufacturing, job openings, S&P Global Manufacturing PMI, nonfarm payrolls, initial jobless claims and factory orders
Fed speakers Monday include Bostic, Goolsbee; central bank heads including Powell, Lagarde, Ueda meet on policy panel at ECB’s Sintra forum Tuesday
The Senate version of Trump’s tax and spending package would add nearly $3.3 trillion to US deficits over a decade, according to a new estimate from the nonpartisan Congressional Budget Office
“My concerns are predominately about the health of the public sector balance sheet,” Ebrahim Rahbari, head of rates strategy and head of research US at Absolute Strategy Research, told Bloomberg Radio. “What we’ve heard from Congress over the last week or so probably adds to these concerns rather than reduces them”
Euro edges 0.2% higher to EUR/USD 1.1735
The euro is on track for an eighth consecutive daily gain; it has only managed an eight-day run four times since March 2009
“We think EUR/USD’s rally is barely halfway done,” write Morgan Stanley’s David Adams and team in report. “USD’s decline is driven by both technical and fundamental forces”
Morgan Stanley forecasts EUR at 1.27 by end-2026 (compared to 1.20 Bloomberg consensus)
Euro options volumes running slightly below recent averages, per DTCC
EUR/GBP up 0.3% at 0.8566; EUR/CHF down 0.2% to 0.9345
USD/CAD: Loonie at day’s high after US’ Hassett affirms push to restart trade talks with Canada
Pair falls as much as 0.4% to 1.3640; loonie up fifth straight month for the first time since 2020
USD/JPY down 0.2% to 144.37
Trump characterized trade in cars between the US and Japan as unfair and floated the idea of keeping 25% tariffs on autos in place
Source : Bloomberg
