Yen strengthens against Dollar on haven demand

On Tuesday, the Dollar hit a six-week low against the safe-haven Yen early as caution mounted ahead of Britain’s election, the ECB meeting, and former FBI Director James Comey’s testimony to a Senate committee, all of which are set for Tomorrow.

In Britain, the latest opinion poll, by Survation for ITV television, showed that Prime Minister Theresa May’s lead over the opposition Labor Party was 1%. Meanwhile, Comey, the FBI director fired by Donald Trump in May, will be grilled by the Senate Intelligence Committee on whether Trump tried to get him to back off an investigation into alleged ties between the president’s 2016 campaign and Russia.

Meanwhile, the Euro steadied against its US counterpart near a seven-month high of $1.1285, as a wait-and-see mood prevailed ahead of Thursday’s European Central Bank policy meeting. ECB policymakers this week, are expected to take a more benign view of the Euro zone economy and discuss dropping pledges to ramp up economic stimulus if needed.

The Australian Dollar trimmed its losses against its major rivals in the Asian session on Tuesday, after the Reserve Bank of Australia maintained its cash rate unchanged as the board opted to keep monetary policy accommodative to attain sustainable economic growth and meet inflation target gradually. The Aussie had earlier fallen to $0.7457 after Australia posted current account data for January-March. The deficit was the smallest in more than 15 years, but it still disappointed investors who had hoped for a rare surplus.

Investors will now be looking to tomorrow’s first-quarter GDP data in Australia, which could give more insight on the market.