Overall market sentiments deteriorated notably last week, with concerns over the swift spread of Delta variant and return to lockdowns, Fed's tapering and slowdown in China. A softening tone from a Fed hawk on tapering gave sentiment a late lift, but it remained to bee seen if that could last. Dollar ended as the strongest one, followed by Swiss Franc and Yen. But the three winners were actually very close with respect pairs staying in range only. On the other hand, commodity currencies were under extremely heavy selling. Aussie was the worst as pressured by free fall in iron ore price and tougher pandemic restrictions. Kiwi followed as RBNZ changed their mind by keeping interest rate unchanged, as New Zealand returned to lockdown too. Canadian Dollar was dragged by extended correction in oil price. Jackson Hole Symposium is unlikely to be inspiration this week. Focus will remain on the virus, as well as overall risk market developments. |
