 Dollar dropped broadly last week and ended sharply lower, as the huge non-farm payroll miss gave a strong node to Fed's patient approach. Progress could only be consider substantial as seen in realized economic data, rather than projected outlook. It's right that Fed is not even in a position to consider tapering. The expectation that ultra loose monetary policy is here to stay for longer boosted US stocks to new record high too. Meanwhile, despite a post NFP spike, treasury yield showed much resilient by late rebound. Back in the currency markets, Yen and Euro followed Dollar as the next weakest. New Zealand Dollar lead other commodity currencies as the strongest ones. Australian Dollar was troubled briefly by increasing trade diplomatic tension with China. The Loonie's rally was put to a halt after job data miss too. Looking ahead, as risk-on markets are set to continue, we'd expect Dollar to stay pressured in general. |
