Dollar ended the week as the strongest currency, boosted by the fresh round of inflation data that led markets to reassess expectations around Fed's rate cuts. This recalibration was also marked a pronounced rebound in treasury yields and a notably cautious sentiment pervading the stock market. Despite this rally, Dollar remained confined within the previous week's range against its major counterparts, suggesting that a clear directional shift is still pending confirmation. On the other hand, Yen and New Zealand Dollar found themselves at the lower end of the performance spectrum. In Japan, positive outcomes from wage negotiations have seemingly paved the way for a much-anticipated BoJ rate hike. Yet, market participants remain divided on whether BoJ will act in its next meeting on Tuesday or opt for a rate adjustment in April. Meanwhile, Kiwi faced downward pressure following remarks from New Zealand's Finance Minister, which painted a grim picture of the economic outlook and fueled speculation about an earlier rate cut by RBNZ. In other parts of the currency market, Canadian Dollar and Euro trailed behind the greenback as the second and third strongest currencies, respectively. Australian Dollar was positioned as the third weakest, while Sterling and Swiss Franc were mixed in the middle. It's important to note, however, that the currency landscape could be significantly reshaped in the coming week, as a series of central bank meetings—including those of BoJ, RBA, Fed, SNB, and BoE—are on the horizon. |
