Dollar ended as the strongest one last week, with some held from the late selloff in US stocks. Yen was the second strongest on risk aversion while Swiss Franc was not too far away. Commodity currencies, on the other hand, ended generally lower. Traders ignored the dovish tapering of RBA, and the cautiously optimistic BoC. Euro also got no support from ECB's PEPP recalibration. Risk sentiment would likely continue drive the forex markets in the near term at least. In particular, DOW's selloff on Friday is seen as a technical warning that deeper correction is underway. We'll keep an eye on the development there, and see if DOW would drag other major indexes further down. Or, strength in tech and others could help floor DOW's fall, and thus, cap Dollar and Yen's rebound. |
