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US: Uncertain political environment to keep the $ pinned down - ING

With President Trump’s support from both within and outside of the White House waning, the uncertain US political environment is likely to keep the dollar pinned down at these low levels, according to Viraj Patel, Analyst at ING.

Key Quotes

“Indeed, it is difficult to find any other domestic catalyst to more than offset this negative factor and drive the $ higher in the near-term; at best, positive US macro data may provide a supporting role. For sure investors are treading cautiously, with false rumours of Gary Cohn (head of the National Economic Council) leaving yesterday causing equity markets to turn lower. This to us highlights the fragile nature of ‘global recovery’ trades right now; tail risks such as geopolitics, protectionism and the unwind of easy central bank money all provide valid reasons to remain cautious in chasing risk. USD/JPY continues to capture this nervousness and could move down towards the 109.00 level, with the tragic events in Barcelona yesterday also weighing on risk sentiment.”

US Dollar flirting with daily lows near 93.40

Tracked by the US Dollar Index (DXY), the greenback is posting moderate losses on Friday around the mid-93.00s following the opening bell in Europe.
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Gold spikes to over 2-month tops, now eyeing $1300 mark

Gold moved higher for the third consecutive session on Friday and jumped to over 2-month highs, near $1295 region during the early European session.
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