 Dollar ended last week sharply higher as boosted by the surprisingly hawkish FOMC projections. Yen followed as second strongest on steep selloff in stocks, while Euro is a distant third. Commodity currencies were the worst performers, with Aussie leading the way, followed by New Zealand Dollar. Though, Swiss Franc were also one of the weakest. Nevertheless, until the economic and health development warrant a rate Fed hike next year, Dollar will likely continue to follow an inverse path with risk appetite. We're not seeing stocks in long term correction for now, but just a medium term correction. Hence, while the near term strength in the greenback was solidified, current rally is still seen as just part of the medium term consolidations. |
