 Dollar emerged notably resilient in a week of highly anticipated inflation data, clinching the top spot among currency performers. With the next FOMC meeting still more than a month away, the greenback's trajectory now rests heavily on the prevailing market risk sentiment. Critical to this equation is the capability of major stock indexes to bounce back after a fortnight of retractions, coupled with the potential continuation of the recent surge in treasury yields. Diverging paths were evident as Yen grappled with its persistent near-term decline, wrapping up the week at the bottom of the performance ladder. Yet, it's the brewing storm in commodity currencies that's capturing significant attention. Directly tying to this is the turbulence in Chinese markets. Escalating investor concerns around real estate crises, looming deflation, and the dive in trade have cast shadows over the financial landscape. This anxiety is palpably evident in the sharp declines witnessed in Chinese stocks and Yuan, with ripples also touching Aussie and Copper markets. In Europe, major currencies presented a mixed bag. While Euro closed slightly weaker when juxtaposed against Sterling and Swiss Franc, they largely danced within their familiar terrains, with traders keeping an eagle eye out for potential breakouts. |
