Entering into US session, the forex markets remain steady today, with major pairs and crosses bounded inside yesterday’s range. Euro is so far the strongest one, followed by New Zealand and then Australian Dollars. Yen is the weakest one, followed by Swiss Franc and then Sterling. But it’s actually not too meaningful to name them as strongest and weakest considering the tight range the pairs are in.
For the week, Sterling is the strongest one so far. It’s rather hard to react to BoE’s new economic projections. Growth forecasts were revised up but inflation forecasts were revised down. Most importantly, BoE painted a much slower rate path and a full 25bps hike in Q4 2021, comparing Q3 2020. Euro is the second strongest, followed by Canadian. New Zealand Dollar and Australian Dollar are the weakest. Dollar pared back much losses after Fed Chair Jerome Powell indicated there is no urgency to shift interest rate in either direction. But there is no follow through buying after that.
In Europe:
- FTSE is down -0.10%.
- DAX is up 0.13%.
- CAC is down -0.41%.
- German 10-year yield is down -0.0046 at 0.011, staying positive.
Earlier in Asia:
- Hong Kong HSI rose 0.83%.
- China Shanghai SSE rose 0.52%.
- Singapore Strait Times dropped -0.20%.
- Japan remained in ultra-long 10-day holiday.
