A public holiday today Stateside provides welcome relieft for the Greenback. The USD has been confirmed as the worst performing G10 currency in the first 6 months of the year according to Rabobank and is threatening to continue its poor performance into the back end of 2017.
Prima facie, one may place the blame on the Dollar decline solely with President Trump however looking at the hard data the economy simply hasn’t picked up as much as intially expected.
Central to this is the now increased market scepticism as to weather the Fed willl be able to announce a third rate hike by the end of the year.
Reversal out of long USD positions is also a function of an improvement in European fundamentals [i.e. political risk] which have driven money back accross the Atlantic. This has seen EUR trade to its highest since May 2016 against the Dollar and is predicted to end the year at 1.1700.
Japanese Yen With JPY at a new 34 year low versus EUR, the market is set for an ambush by the Bank of Japan if it acts today at the end of their Policy Meeting to support the Yen. The reason that the market is susceptible is because it has convinced itself that the BoJ […]
Too soon to call USD lower Those following the US Dollar’s performance in the markets would have noted a recent downturn accelerating as this week has progressed. There have been two factors driving this sell-off but it is far from certain that either may endure long enough to push the Dollar index back to its […]
Milan, Italy The City of Milan has a late night noise problem and so it has acted unilaterally to resolve it-Italian style. A ban on the sale of take away food including ice cream and pizza after midnight is being imposed to protect the “peace and health of residents.” Here in the UK late night […]