European Central Bank will announce its monetary policy later on the same day. ECB President Mario Draghi is expected to hold the benchmark rate and stimulus programs without any changes. Draghi said on Friday that very substantial accommodation is still necessary for the Euro zone despite the risk of deflation not being a growing concern.
European shares edged up on Wednesday and gold fell as questions hung over the 'reflation' trades that had lifted markets since Donald Trump became U.S. president, while sterling held near a six-month high after Tuesday's calling of a snap UK election.
The U.S. dollar continued to recover from a five-month low against the Yen early Tuesday, after testing 108.11 yesterday. Comments from U.S. Secretary of the Treasury Steven Mnuchin, stating that a strong dollar is good in the long run, offset previous remarks from President Trump who last week said that the dollar is getting too strong and that it is hard to compete when other countries devalue their currency.
Shares and the dollar fell on Tuesday as a snap general election call in Britain added to a lengthening list of uncertainties for investors already on edge over tensions simmering from North Korea to France.
Strong dollar or weak dollar; take your pick. The dollar took a break last week after President Donald Trump said that the dollar was too strong. U S. Treasury Secretary Steven Mnuchin told the Financial Times that a strong dollar was a positive in the long term. Overall, this did not help the mood of the commodity sector that is acting like it had too many Easter eggs. Both precious metals and industrial metals are taking a hit and that is not helping oil as the market sells off in a light volume frenzy.
Shares and the U.S. dollar dipped on Monday while U.S. bond yields slumped to five-month lows after soft U.S. economic data hurt investor sentiment already frayed by worries over North Korea and coming French elections.