European shares,
the euro and the pound all stumbled on Monday as rumblings in Spain,
Britain and Brussels reminded investors that the region still has plenty
of political uncertainty left in the tank.
A
one-month high for oil LCOc1 and bounce in the dollar .DXY had
triggered Asia's best session in weeks overnight but Europe struggled to
maintain the momentum early on.
The euro EUR= and Spanish stocks .IBEX[.EU] and bonds [GVD/EUR] all saw a soft start as one of the most outspoken critics of Mariano Rajoy's ruling party and Spain's austerity policies returned to front the opposition Socialists.
Britain's pound was also in the firing line, back below $1.30 GBP=, as polls showed the country's election race tightening and its chief Brexit negotiator again threatened to walk away from EU exit talks unless the bloc eased its demands.
The dollar, meanwhile, pulled off a six-month low after concerns about Donald Trump's firing of a former FBI head and his administration's links to Russia had given the greenback a drubbing last week.
The dollar index, which tracks the U.S. currency against a basket of six major rivals, rose 0.2 percent .DXY while futures markets pointed to a steady start for Wall Street ESc1 when trading resumes.
Net long positioning on the euro versus the dollar rose to its highest in more than three years last week Commodity Futures Trading Commission data showed on Friday.
But Citi's 'economic surprise' indicators show .CESIUSD the recent bout of negative U.S. economic surprises may now be bottoming out. Analysts are also waiting for this week's release of the Federal Reserve meeting minutes.
The euro EUR= and Spanish stocks .IBEX[.EU] and bonds [GVD/EUR] all saw a soft start as one of the most outspoken critics of Mariano Rajoy's ruling party and Spain's austerity policies returned to front the opposition Socialists.
Britain's pound was also in the firing line, back below $1.30 GBP=, as polls showed the country's election race tightening and its chief Brexit negotiator again threatened to walk away from EU exit talks unless the bloc eased its demands.
The dollar, meanwhile, pulled off a six-month low after concerns about Donald Trump's firing of a former FBI head and his administration's links to Russia had given the greenback a drubbing last week.
The dollar index, which tracks the U.S. currency against a basket of six major rivals, rose 0.2 percent .DXY while futures markets pointed to a steady start for Wall Street ESc1 when trading resumes.
Net long positioning on the euro versus the dollar rose to its highest in more than three years last week Commodity Futures Trading Commission data showed on Friday.
But Citi's 'economic surprise' indicators show .CESIUSD the recent bout of negative U.S. economic surprises may now be bottoming out. Analysts are also waiting for this week's release of the Federal Reserve meeting minutes.
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