The US dollar is on the back foot so far today as we pointed out earlier and this has been driven in part by a decline in the probabilities for a June rate hike. The probabilities for a rate hike this month from the FOMC were at 30% at the end of the day on Friday following Yellen’s hawkish comments but dropped back to 24% yesterday before moving further lower to 18% today.
With some indicators suggesting that today’s main economic release from the ISM manufacturing PMI could miss expectations, if this were to occur then a drop even further would be expected.
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