While trade tension between the US and its allies dominated the headlines last week, Euro emerged as the strongest major currency. Receding Eurozone internal political risks was a key factor. German 10 year bund yield hit as high as 0.52, comparing to 0.186 low just two weeks ago, before closing at 0.45. Expectation of a decision by ECB on it asset purchase program is another key factor pushing up the common currency. On the other hand, Japanese Yen ended as the weakest one as major US and European yields recovered. Dollar followed as the second weakest. The G7 meeting in Canada should progress little progress. But based on the information so far, tensions between the US and G6 didn't intensify. Markets will likely look through G7 to the week with FOMC rate hike, ECB meeting and BoJ. In addition to that, there will be loads on important data including US CPI, UK CPI and jobs German ZEW and Australia employment, etc. And, don't forget the historical meeting between North Korean Leader Kim Jong-un and US President Donald Trump too. That's a marvellous achievement by South Korean President Moon Jae-in to orchestrate it. |