Dollar ended as the worst performer, followed by Yen and Swiss Franc. The US stock markets traded with risk-on sentiment, on talks that Fed would start slowing down tightening pace after one more 75bps hike. But it should be noted that such sentiment was not seen everywhere in the world, in particular China. Thus, rally in commodity currencies was somewhat capped. Sterling and Euro were the best performers. The Pound was supported by stabilization in UK politics, and expectations of a 75bps hike by BoE. There is prospect of further rally in Sterling ahead, especially in crosses, if the new again UK government could restore investor confidence with the budget to be announced in the middle of the month. |
