Dollar ended broadly lower last week, as the worst performer, as hammered by the events of FOMC meeting and GDP release. In short, Fed chair has signalled slower tightening pace ahead and the message was reinforced by another quarterly GDP contraction print. Whether the US was already in recession or not, Fed is turning from an auto-pilot mode to a data-dependent mode, after interest rate reached neutral range. Euro hasn't been able to capitalize on Dollar's selloff, and ended as the second worst. Europe has it own problem of continuing war in Ukraine, inflation, and additional threat of Russia gas supply crunch. Yen was the winner responding to fall of major global benchmark yield. Sterling and Swiss Franc were the next strongest, as supported by buying against Euro. Commodity currencies were mixed, as partly supported by risk-on sentiment. |
