The dollar strengthened throughout the day yesterday as trade war fears lingered and concerns for the stability of Merkel’s government intensified. Trump said yesterday that “if the WTO doesn't treat us properly, we will be doing something". Global equities opened lower on the day and the dollar remained broadly strong throughout London and New York sessions on Monday.
US ISM Manufacturing PMI also printed better than market forecasts on Monday at 60.2 vs. 58.2, providing some extra support to the greenback. There isn’t any major data releases due for today from the US and with the World Cup in full flow and a US bank holiday tomorrow, it might be a steady session today, but with tariff tiffs and developing political instability in the UK and Germany, we can’t rule out volatility entirely.
Construction PMI data numbers were released today at 53.1 vs the forecasted 52.6. GBP/USD opens at 1.3143.