USD Holding Higher, With Lower US Tsy Futures, China MLF/Q2 GDP Out Soon

The USD BBDXY index sits around 1251.75 in latest dealings, slightly off session highs. Market focus remains on fallout from the weekend assassination attempt on Donald Trump. Market odds have firmed for his victory since the end of last week (see this link).

• US Tsy futures gapped lower at the open but sit slightly higher now (there is no cash Tsy trading as Japan markets are out). We are still comfortably above pre US CPI levels from last week. The BBDXY index is likewise still sub pre US CPI levels. US equity futures are up around 0.20% at this stage.
• A Trump Presidency may be seen in favor of a reflation theme and tax cuts, particularly for the corporate sector, which are likely in play in terms of driving market moves so far today.
• NOK and SEK are the weakest performers at the margin, down 0.50 and 0.4% respectively, although liquidity will be lighter in these pairs. USD/JPY is back around 158.25, just off session highs.
• AUD and NZD are also weaker, NZD/USD back under 0.6100. Earlier data showed the services PMI dropping to 40.2 from 42.6. AUD/USD is around 0.6765.
• Looking ahead we have the China MLF and June data prints out in a little while. Q2 GDP also prints. Later on, Fed Chair Powell makes his final scheduled appearance ahead of the pre-July FOMC meeting communications blackout.