The rumbling storm surrounding the White House showed no sign of dissipating after the appointment of a special prosecutor to investigate the president. Investors are concerned that the administration will lack the cohesion and the congressional support to bring in the deregulation and tax cuts that were supposed to boost the US and therefore the global economy. That concern weighed on commodity-oriented currencies, affecting the Australian, NZ and Canadian dollars almost equally. The Aussie gained two fifths of a US cent but only added a dozen ticks against the pound despite some punchy Australian employment figures.
Investors were less than impressed to receive confirmation that UK inflation had overtaken the pace of wage increases. They looked more kindly on some strong UK retail sales figures for April but the pound had to give all of it back as investors lost their nerve when they saw it above US$1.30.