Analysts at Scotiabank noted how the USD reacted to a cease fire in Ukraine, a lack of agreement over Greece, negative rates and QE in Sweden & a slight hawkish shift at the BoE.
Key Quotes:
"FX competitive devaluations still an important market theme; and supports ongoing USD upside risk."
"CAD is stronger benefiting from building AUD/CAD short positions, stabilisation in oil markets and improved risk sentiment.
"EUR is flat trading within narrow 4-session range; Greece talks pushed out to Monday; German inflation lower than expected."
"GBP rallies—BoE takes slight hawkish shift, increasing med-term inflation & wage forecast; markets pull forward rate expectations."
"SEK collapses as Riksbank cuts rates to negative, introduces QE and warns that door is open to more."
"USDJPY shifts lower as media reports suggest BoJ see additional QE as counterproductive. USD/JPY 50-day MA at 118.81 serves as support."
"AUD is weak as the unemployment rate rises to 13-year high of 6.4% & expectations are for a dovish sounding Gov Stevens on Friday."
Key Quotes:
"FX competitive devaluations still an important market theme; and supports ongoing USD upside risk."
"CAD is stronger benefiting from building AUD/CAD short positions, stabilisation in oil markets and improved risk sentiment.
"EUR is flat trading within narrow 4-session range; Greece talks pushed out to Monday; German inflation lower than expected."
"GBP rallies—BoE takes slight hawkish shift, increasing med-term inflation & wage forecast; markets pull forward rate expectations."
"SEK collapses as Riksbank cuts rates to negative, introduces QE and warns that door is open to more."
"USDJPY shifts lower as media reports suggest BoJ see additional QE as counterproductive. USD/JPY 50-day MA at 118.81 serves as support."
"AUD is weak as the unemployment rate rises to 13-year high of 6.4% & expectations are for a dovish sounding Gov Stevens on Friday."
