The US Dollar has slipped to more than a 3-year low as Donald Trump has doubled down on his calls for lower interest rates, criticising Fed Chairman Jerome Powell in the process. Speculation that Trump is also looking to name Powell’s successor much earlier than usual, according to a Wall Street journal has also damaged The Dollar. Keeping with Interest Rates, bets have ramped up for an interest rate cut as early as next month.
Donald Trump is sticking with his strong belief that The U.S interest rates need to be at least two to three points lower than where they currently sit, stating that higher rates will only lead to further economic damage. As we know, Powell is reluctant to cut rates as quickly and aggressively, pointing to the potential inflation risks off the back of Trump’s Tariffs which is still fairly uncertain. More importantly, the conflicting stances from Powell and Trump are only hurting The Dollar.
Moving into the afternoon, we have a basket of economic data releases in The U.S, starting with Durable Goods Orders which generally portrays the current state of US production. Figures from May suggest a huge upturn in production which bodes well for a healthy economic performance. We then have the release of GDP figures with forecasts suggesting no growth last month, however this could weigh heavily on the argument for and against interest rates for The Federal Reserve as increased GDP figures generally follow with higher inflationary pressures which would point towards the current sentiment of Donald Trump.
GBP/EUR 1.1709 GBP/USD 1.3752 GBP/AED 5.0529
GBP/AUD 2.1000 GBP/CHF 1.0980 GBP/CAD 1.8813
GBP/NZD 2.2654 EUR/USD 1.1730 GBP/ZAR 24.1832