 Dollar continued its reign as the strongest currency for yet another week, bolstered by solidifying expectations around gradual and measured rate cut cycle by Fed. The rate cut from ECB provided some additional tailwind for the greenback. However, momentum behind the Dollar's rise remains tepid. Strong risk-on sentiment, coupled with sluggishness in U.S. Treasury yields, is capping further gains. Additionally, the potential for intervention from Japanese authorities has kept Dollar’s advances against Yen in check. Sterling ranked as the second-best performer this week, supported by mixed economic data from the UK that leaves BoE's policy outlook uncertain beyond the widely expected November rate cut. Notably, Pound resumed its uptrend against the weaker Euro, reaching its best level since mid-2022. Meanwhile, Swiss Franc ended the week at the bottom of the performance chart, with Euro not far behind. Australian Dollar also struggled, despite a brief bounce following stronger-than-expected jobs data. The lack of concrete measures in China's recent stimulus announcements continues to weigh on Aussie. Broader risk sentiment in the Asia-Pacific region, in China, Hong Kong, and Japan, is adding further pressure on the currency. |
