Dollar drop fades as stocks shy from Trump....>

FOREX: Dollar drop fades as stocks shy from Trump speech

- Confirmation that President Trump is to hold a press conference to announce

major China policy measures sent risk appetite spiralling in the latter hours of

Friday, helping the greenback to bounceback from a weak start. Month-end flows

uniformly pointed at USD sales into the fix, prompting the USD to fall against

most others (notably the EUR) before deteriorating equities helped arrest the

slide. After a strong start to the week, CAD reversed into the close despite GDP

data faring slightly better-than-expected, with markets likely taking profits on

the sharp rally earlier in the week.

- The coming week is a particularly busy one, with May ISM data in the first few

days before the week closes off with the US and Canadian jobs reports. The US

unemployment rate is seen climbing again to just shy of 20% as the US economy

sheds a further 8mln jobs across May. Several rate decisions are also due, with

the RBA and BoC seen keeping rates unchanged. The ECB are expected to modify

their purchase programme to counter the looming economic risk by boosting

purchases to as much as E500bln.