 Euro is emerging as the strongest currency for the week, bolstered by ECB's resistance to the expectations of a rate cut. The common currency will now look into today's Eurozone data. Positive surprises from there could solidify ECB's stance, and give Euro more fuel to extend recent rise. For now, Japanese Yen followed as the second strongest, supported by declining global treasury yields and in anticipation of the upcoming BoJ meeting. Australian Dollar ranked as the third strongest, driven by robust job data and an improving trade relationship with China. Conversely, Dollar remains generally weak and is on track to be the worst performer for the week. Fed's dovish turn led to sharp decline in the greenback and treasury yields, while simultaneously propelling DOW to record highs. The impact of these moves is ongoing and far from over. New Zealand Dollar ranks as the second-worst performer, with economists retracting their expectations of another rate hike by RBNZ following disappointing GDP data. Canadian Dollar also underperformed, despite a recovery in WTI crude oil prices above 70 mark. Sterling showed mixed performance despite BoE's hawkish hold. |
