- President Joe Biden announced on Sunday he is out of the presidential race with the decision being in the best interest of the Democratic Party and the country, according to Biden himself. Vice President Kamala Harris now steps ups and Democrats have managed to top $50m in Democratic fundraising after the current president dropped out of the race.
- The US Dollar is lower across major peers and is poised to see further weakness as political turmoil affects the haven status of US assets and shifts investors to a monetary policy play instead. As the news arrived, markets have entered the communication blackout period from the Federal Reserve, with no officials able to push-back on rate cut speculation. The focus now shifts to this week’s PCE data (Fri.), which is widely expected to show another disinflationary print. GDP data for the second quarter is also due to be released (Thurs.) and likely to show that the economy has expanded but at a moderate level.
- USD/JPY slipped as much as 0.6% on the day to currently trade around 156.5.
- The euro edges higher this morning, aiming to test the 1.09 resistance once again after trading as high as 1.0948 last week. It will be a quiet week in terms of data for the common- area, with Euro-area PMIs (Wed.) and Germany IFO survey (Thur.). Investors will also be looking out for the ECB’s report on monetary developments in the region for the month of June.
- The sterling holds above 1.29 after breaking through 1.30 last week. The next key resistance is around 1.3044, last week’s high. There is little data out of the UK this week, but Investors will be paying attention to UK Flash Composite PMI (Wed.).
