Dollar Falls on Political Pressure

Benchmark U.S. government debt yields slid to six-week lows on a flight to safety bid and the dollar weakened further on Wednesday as investors assess how a conviction and a guilty plea of two former advisers impact U.S. President Donald Trump.

A gauge of global equities rose, lifted by higher energy prices and strong earnings from retailers in a session that marked the longest U.S. bull market. It came a day after the S&P 500 stock index set an all-time high.

U.S. Treasuries yields also fell as contentious trade talks between U.S. and Chinese officials were set to resume on Wednesday and as investors looked to minutes from the Federal Reserve’s August meeting due later in the session.

“Beyond the political uncertainty associated with what’s going on in Washington, there are broader macroeconomic concerns resulting from on-again, off-again trade tensions and of course where the Fed stands on this,” said Ian Lyngen, head of U.S. rates strategy at BMO Capital Markets in New York.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza