The dollar has weakened this morning against a basket of currencies due to lower US Treasury yields. The yields dropped after weak housing market data. Homebuilding fell for a second month in June and permits dropped to a two-year low, suggesting that the housing market is struggling.
Concerns over the US-China trade war has also contributed to the dollar’s weakness, after reports that progress towards a deal has stalled. This hold up comes as President Trump’s administration decides how to respond to demands from Beijing to ease restrictions on Huawei. No face-to-face meetings have taken place since the G20 summit at the end of June.
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