TD Securities strategists Izidor Flajsman and Prashant Newnaha argue that Australia is entering a rare phase of unilateral RBA tightening, with the Fed expected to cut while the RBA continues hiking.
The Australian Dollar (AUD) trades higher against its major currency peers, except the New Zealand Dollar (NZD), during the European trading session on Thursday.
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is extending its losses for the second successive day, trading around 97.90 during the European hours on Thursday.
MUFG’s Lloyd Chan notes the US Dollar (USD) has softened as US Dollar Index (DXY) retests support and US yields fall, while equities hit new highs. Recent US data show stronger ADP employment but worrying ISM services inflation and weak employment.
European Central Bank (ECB) policymaker and Bank of France Governor Francois Villeroy de Galhau said in the European trading session on Thursday that the central bank should focus on the data and not the timing of any monetary policy adjustment
EUR/JPY remains flat after experiencing volatility, hovering around 183.70 during the early European hours on Thursday. The currency cross remains subdued as the Euro (EUR) failed to gain support from the strong German data.
European Central Bank (ECB) Governing Council member and President of the Deutsche Bundesbank, Joachim Nagel, said during the European trading session on Friday that the central bank could raise interest rates if the outlook for the Eurozone economy doesn’t improve markedly.
The Pound Sterling (GBP) trades calmly against its major currency peers, flattening around 1.3600 against the US Dollar (USD), during the European trading session on Thursday.
Danske Research Team expects the the central bank of Sweden, Riksbank to keep its policy rate unchanged at 1.75% but adopt a more hawkish tone, acknowledging upside inflation risks.
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is remaining steady after posting nearly 0.5% losses in the previous day and trading around 98.00 during the Asian hours on Thursday.
