Safe-haven currencies remain unchanged, Sterling softens on spending concerns
Safe-haven currencies were on the defensive on Tuesday as hopes of an economic recovery strengthened stock prices. The Pound Sterling was under pressure after British Prime Minister Boris Johnson pledged a “Rooseveltian” boost to public spending.
Fresh optimism was spurred by pending home sales data from the U.S., signaling a recovery of the U.S. economy in May after a record plunge dealt by the COVID-19 pandemic. Based on contracts signed last month, pending home sales surged by 44.3%, compared to a forecast for a 18.9% rise by economists.
Wall Street saw 14% gain in Boeing shares as the aircraft maker resumed its long-delayed flight tests of its redesigned 737 MAX planes.
The U.S. Dollar rose to ¥107.59, reaching a three-week high of 107.885. However, its gains were limited by its 100-day moving average around that level.
The Swiss Franc loosened to $0.9511 and €1.0697. Meanwhile, the Euro traded at $1.1244, slightly gaining more against the Greenback on Monday.
The British Pound Sterling traded at $1.2297, after it fell to a one-month low of $1.2252 on Monday as concerns grew over how Britain would pay for its planned infrastructure program. The Sterling has reached a three-month low against the Euro, which last traded a £0.9175 on Monday.
Meanwhile, the offshore Chinese Yuan held steady at $7.0746.