A third quarter dominated by extraordinary central bank action and disappointing growth is winding down. The Fed and BOJ launched QE3 and the ECB pledged to buy bonds as part of the ESM.
The US dollar is strong today but it was the worst-performer in the quarter, losing ground against every G10 currency.
The scandies were strong but of the currencies we follow most-closely, NZD edged CAD.
Browsing through the quarterly charts, a few stand out.
The euro is showing resilience above 1.25 that points to a potential re-test of 1.35 before year end but the durability of the recent strength is still in question.
The cable chart is a reminder that not much has changed in the past 3 years. The narrowing pattern suggests a breakout to 1.70 or below 1.50 might not be far off.
The final chart that I think is worth watching is gold. In dollar terms, gold is wrapping up its best quarter ever. A solid break above $1800 looks like a moonshot.
