 Yen remained in the spotlight last week, dominating headlines even as some significant global inflation data also moved markets. The Japanese currency continued its downtrend, reaching multi-decade lows. Despite the prolonged decline, Japanese authorities refrained from intervening directly in the markets. However, the looming threat of intervention kept traders cautious, resulting in a more controlled descent. Nevertheless, Yen ended the week as the worst-performing currency. In contrast, Australian dollar emerged as the strongest performer, buoyed by increased speculations of another RBA rate hike following robust inflation data. Canadian dollar also showed strength, securing the third spot due to strong inflation figures that diminished the likelihood of an imminent rate cut by BoC. Euro, which had been impacted by political uncertainties in France, recovered and became the second strongest currency of the week. Despite this recovery, Euro remains the second weakest currency for the month, just ahead of Yen. Swiss franc was the second weakest performer of the week. Global inflation data suggested that the monetary easing cycle would continue at a slow pace, keeping rate gap with SNB wide. New Zealand Dollar also struggled, ending as the third worst performer, partly due to additional pressure from its decline against Aussie. Dollar and the British Pound finished in middle positions. While the greenback fell against Euro, Sterling, Loonie and Aussie, it remained within the previous week's range. Market participants have become cautious ahead of the upcoming election risks in France and the plethora of US economic data, including non-farm payrolls report, scheduled for the coming week. Similarly, the Pound has not found a clear direction, with UK's upcoming elections adding to the uncertainty... |
