And just like that, we're at the end of yet another month. After all the action last week, let's see how major currencies have performed as of today with the dollar used as a benchmark:
- EUR +0.9%
- JPY +1.6%
- GBP +1.2%
- CHF +2.6%
- CAD +0.1%
- AUD +0.3%
- NZD +0.9%
If you discount the gains today, the antipodean currencies haven't exactly performed that much better than the dollar. The biggest winner is the Swiss franc amid shifts from the Fed and the ECB. But it also comes as USD/CHF falls through the floor of key support at 0.8800, despite some stablisation in the final two weeks.
The dollar is once again lower across the board and has to look towards a mispricing in the Fed outlook (again) and a better US economy compared to the rest for supportive factors towards the end of the year. On the former, markets are anticipating a rate cut as early as March 2024 and if the Fed is able to challenge that pricing, the dollar could find some scope for gains later on.
For now, stocks are continuing to revel in the occasion that we are seeing major central banks starting to turn the corner in the tightening cycle. Equities have already been on a tear this year, so could that run extend further? The sky's the limit it would seem.
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