US dollar slumps but it’s tough to see why

The US dollar is under broad pressure as New York ramps up this week.

It’s not clear what is behind the dollar softness. The bond market is quiet and stocks are modestly bid. Fundamental news has been minimal and the comments from Goolsbee weren’t particularly dovish (at least by his standards). Fed pricing is steady at 47 bps in cuts for the year.

Cable illustrates the move, rising 30 pips for no particular reason.

The one place I would expect to see some dollar weakness but after the drop earlier, it’s been more-or-less steady.

So I’m scratching my head on this move.

For the UK specifically, there is the better CBI data but this isn’t really a GBP move as the dollar is soft right across the board,including in AUD/USD.

This article was written by Adam Button at www.forexlive.com.