‘T is going to be another good day for the Buck me thinking
SHORT TERM VIEW
- ECB chose to stay dovish and play the currency , hammering on the open-ended nature of QE, re-investments of maturing bond proceedings, not touching rates fo rat least another year from now.
- AUD CPI disappointed and CB tries to keep the animal down on every occasion
- NZD has its internally focused dominance returning with Labour and all that comprises.
- In Canada , CB tries to scramble back on rate hikes and the numbers start to falter
- In the UK ,Brexit roars its ugly head again, numbers erratic . £ lost a few levels on the techs too through 1.3150 and 1.3120
- In Switzerland, local investors are in the process of normalizing their CHF dominated portfolio’s it occurs and we have still have SNB there.
- In Japan , there’s an extra budget underway, Abe’s re-election should keep the JPY at least in check with lose monetary and fiscal policies and YCC. And the Japanese investors will continue to buy unhedged foreign bonds. But on the techs this one is the least obvious,it’s rather eurjpy lower in play than usdjpy , which is in a 113.50-114.50 range for now
- EM worries are legion , from Nafta to faltering economics to geopolitics … Looking at MXN, ZAR and TRY , it’s a sea of red
- So compare this to the US , where we have a Fed Chair race will result in a less dovish balance, Tax Reforms underway not the budget’s been voted , Earning season flashing seas of Green, and
eco data keep showing growth.
- It’s a question of choice but I reckon USD will finish the week strong , it’s actually already happening