Dollar Slips as Investors Await Ukraine News
A gauge of the dollar edged lower as investors waited for President Donald Trump’s talks with Ukrainian President Volodymyr Zelenskiy, after the US-Russia summit ended without any new sanctions on Russia or buyers of its crude.
The Bloomberg Dollar Spot Index slipped 0.1% as Trump prepared to host Zelenskiy and European leaders to set out terms for a potential peace deal he discussed with his Russian counterpart Vladimir Putin on Friday
“One suspects there will be some heat on Zelenskiy this time around to take whatever is put on the table,” wrote Chris Weston, head of research at Pepperstone Group
Friday’s Jackson Hole symposium will also be on traders’ radar, giving room for the dollar to rise should Federal Reserve Chair Jerome Powell’s speech result in some implied interest rate cuts being priced out.
Treasury yields edged lower, with the benchmark 10-year yield down one basis point to 4.30%.
USD/JPY rose 0.1% to 147.39.
Hedge funds boosted short positions against the yen and now hold some 41,257 contracts tied to a future decline in the Japanese currency, the most since January, Commodity Futures Trading Commission data show.
AUD/USD edged up 0.2% to 0.6519.
Australia’s economy can expand at a faster pace if governments regain the “growth mindset” that has been absent from decision-making for too long, said Danielle Wood, chair of the nation’s Productivity Commission.
EUR/USD steadied at 1.17.
GBP/USD edged up 0.1% at 1.3561.
Source: Bloomberg
