The dollar ended the week higher against most major currencies as risk aversion pressured risky assets. European Central Bank President Jean-Claude Trichet stated that the ECB will withdraw emergency cash gradually and tighten the standards under which it accepts newly issued asset-backed securities as collateral from banks for its refinancing…
Tag Archives: currencies
This Week’s Market Outlook
The moves this week should convince anyone that had any doubt, that the correlation between equity markets and currencies remains alive and well. It was a rollercoaster, with EUR/USD oscillating between 1.4800 support and 1.5000 resistance for the better part of the week. The S&P 500 meanwhile continued to find…
Dovish MPC Minutes Adds to the Pressure on UK Yields
The pound has recorded a split performance this week. It fell against the low yielding currencies (Japanese yen, US dollar, euro and Swiss franc) and rose against the commodity currencies (Canadian, Australian and New Zealand dollars) and the Swedish krona. GBP/USD closed the week at $1.6519, pulling back from the…
Weekly Technical Commentary
Subtle signs in a series of currencies that the trend to generalised US dollar weakness is about to step up a gear. Which currency will lead is unclear, though the Brazilian real and Australian dollar have so far, +33% this year. For dollar/yen we continue to favour a series of…