Gold is slightly higher, underpinned by fresh 7-month lows in the dollar index. The greenback is being pressured by dwindling expectations that the Trump reflation agenda will be advanced this year.
The ECB tried to soften Mario Draghi’s taper-talk from yesterday, saying that the markets misjudged his comments and his intent was to be more balanced. While that knocked the euro off the 12-month highs set earlier in the session, the trend in the euro remains positive. And that’s going to weigh on the dollar.
The market also continues to digest the hubris of Janet Yellen when she said another crisis was unlikely to happen in this lifetime. That’s an awful lot of faith in policymakers’ abilities to keep all the plates spinning, even as the number of plates (debt) continues to expand.
The U.S. trade deficit narrowed modestly in May, coming in near expectations. Later this morning we have NAR pending home sales and EIA data. Tomorrow we’ll get the third look at Q1 GDP and I’m expecting a downward revision.