Dollar and Euro ended as double winners of the week. The greenback was boosted by solid economic data from the US, including non-farm payrolls, risk aversion, and rising yields. On the other hand, ECB policy makers were singing a hawkish chorus which prompted expectation of a 75bps rate hike at the September 8 meeting. Yen was the biggest looser on the back of rising benchmark yields in the US and Europe. BoJ is also clearly maintaining a dovish stance. Yen was also pressured on heightened geopolitical tension in the Taiwan Strait, with repeated military provocation by China using drones. But Sterling was not too far away from Yen, as UK's outlook, which is already in recession, looks dim. Swiss Franc is paring some of recent gains, as Euro recovered. Commodity currencies were mixed, with Canadian Dollar having a mild upper hand against Aussie, for expectation of a 75bps BoC hike and a 50bps RBA hike this week. |
