 The stronger than expected consumer inflation data from the US basically sealed the case for a 75bps hike by Fed next. Dollar ended as the strongest one last week, as supported by risk aversion too. But the greenback could only close above prior week's high against Canadian and New Zealand Dollar, suggesting that momentum was relatively unconvincing. Yen recovered on intervention threat by Japan, and closed as second strongest, followed by Euro. Commodity currencies ended as worst performers on risk sentiment. It's hard to say which one of Aussie, Kiwi and Loonie has an advantage over the others. Yet, it's the weakness in Pound that caught most attention, which hit multi-decade lows against Dollar and Swiss Franc. |
