FOREX slumbered on Monday (bank holidays in London and New York) and didn't really wake up on Tuesday.
Spreads remained narrow and the underlying trend, which has been rather bearish for the Dollar over the past few weeks, prevailed once again, with the $-Index recording a 3rd session of decline, down -0.15% at 104.40: it is now close to its May 15 low (104.30).

The euro gained +0.15% against the dollar to 1.0875, the greenback was down -0.1% against the pound and -0.3% against the Swiss franc, but gained 0.1% against the yen, which fell to 157, a level that coincides with the lows of... 1990 lows.
The Swiss franc also gained +0.15% against the euro to 0.9905.

The dollar did not benefit from the rise in US consumer confidence, which improved to the surprise of all: the Conference Board reported a score of 102 versus 97.5 in April, while the consensus was for a decline to 96.

The reason for this lies in the rise in European yields (+5pts on average), while T-Bonds yields are limited to +3.5pts.

More important dates will mark the end of the week, starting with Friday's release of inflation figures, which will be closely watched in both the U.S. and Europe.

These data will provide further information on future interest rate trends, particularly from the Fed, in a climate of growing skepticism about the possibility of further rate cuts.

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