The dollar remains in a weak position this morning, but has benefited from the pound’s drop. The greenback is still on the back-foot due to possible rate cuts.
The dollar slipped to a two week low on Friday as expectations of a rate cut grew. Economic data did not change the fact that the Federal Reserve are expecting to cut rates this year. The dollar got a brief lift from better-than-expected existing home sales, however IHS market data showed that manufacturing growth weakened, whilst service sector activity slumped to its lowest level since 2016.
This week, the G20 summit will take place. The President Trump and President Xi Jinping are expected to discuss trade issues, so it will be interesting to see if this ongoing US-China trade war can finally be resolved.
