The dollar remains under pressure with the next Federal Reserve meeting in two weeks’ time with a growing likelihood there will not be an interest rate hike. The combination of poor Chinese data yesterday which highlighted factory activity fell for the 15th month running and concerns over weak global economic growth dictate the Fed will be reluctant to take action. This should keep the pressure on the dollar going forward with some weakness to be expected. As far as GBP USD is concerned the rates are being driven by the British referendum with sizeable losses for sterling across the board.
It does not surprise me in the slightest that Donald Trump will be on UK soil at the time of the British referendum for EU membership. What a coincidence the opening of a golf resort he owns is on the 24th June, the day the outcome will be released. Whilst he is in favour of a Brexit he will know that he can use the publicity to his advantage for his own presidential campaign and will no doubt do so when in Scotland.
A very clever, even if aggressive political move from Donald Trump which will no doubt cause fireworks amongst all the ranks following clashes with David Cameron and Sadiq Khan whilst Nicola Sturgeon also stripped him of his role of business ambassador for Scotland. There will be huge implications from this visit and the dollar is likely to be affected by it, most likely with dollar weakness in the short term.