The Swiss National Bank has just delivered one of the biggest surprises in the history of central banking courtesy of a surprise 50 basis point interest rate hike that takes the policy rate to -0.25%
Dollar is trading higher against all G-10 currencies with the exception of the Japanese yen as markets begin the week in a risk off mood following Friday’s faster...
Core view of a strong USD stays intact and we continue to expect more USD strength. This is especially so when yield differentials stay supportive of the USD amidst the front loading of hawkish rate hike expectations from the US Federal Reserve (Fed).
open semi portal ---the yen is back as a safe haven although it remains hard to push back the USD bulls. Japanese investors are also selling overseas bonds and that means flows back into the yen. USDJPY slipped to mid-127 as sole standout performer among G10 peers. Yen crosses look more appealing.
The Euro-to-Dollar exchange rate is forecast to outperform into 2022 as the Eurozone starts to deliver above trend economic growth and the anti cyclical Dollar retreats once more. Above-trend global growth and structurally lower inflation should give the euro a relative edge. The Eurozone economy is expected by the bank to recover amidst the release of pent-up...
With interest rates in Australia now low, and the RBA unlikely to shift stance, the Aussie Dollar might find itself lacking support from its central bank. A dovish RBA is AUD negative all else equal, a fairly straightforward thesis.
Abroad, the European Central Bank President Christine Lagarde said that monetary and fiscal stimulus should remain until there are clear signs that a "firm, solid and sustainable" economic recovery is underway. The ECB agrees to maintain an elevated pace of bond purchases while upwardly revised projections for the bloc's economic growth and inflation for 2021 and 2022.