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14 May 2015
Currency news: USD weakness continues – TDS
FXStreet (Barcelona) - Paul Fage, Senior Emerging Markets Strategist, TD Securities, summarizes the key developments in currency space across developed and emerging markets.
Key Quotes
“After yesterday’s general hammering of the USD in the wake of weak US retail sales numbers, we continue to see USD weakness today, but the picture is not so clear cut. Against USD, EUR is up 0.5%, but JPY is unchanged and AUD is down. NZD has outperformed AUD on very strong retail sales data, which we think makes RBNZ rate cuts unlikely, at least in the near-term.”
“EM FX is generally stronger against USD. The main exception to this is USDRUB which is currently up 1.3% on very volatile trading. CBR announced that it would be buying $100-200mn of FX in the market each day in order to replenish reserves. While the amounts are relatively small, it is another sign from the CBR that they don’t want RUB to appreciate too much. The strongest performer in EM is KRW, up on buying ahead of the BOK meeting on Friday—the consensus is for no change in rates.”
“Fixed income markets are mainly firmer: 10y UST –2.7bps, 10y bunds –0.2bps. Asian and European equity markets both mixed with relatively small moves.”
“Brent Oil is up 0.3%. Base metals mixed, precious metals are small up.”
Key Quotes
“After yesterday’s general hammering of the USD in the wake of weak US retail sales numbers, we continue to see USD weakness today, but the picture is not so clear cut. Against USD, EUR is up 0.5%, but JPY is unchanged and AUD is down. NZD has outperformed AUD on very strong retail sales data, which we think makes RBNZ rate cuts unlikely, at least in the near-term.”
“EM FX is generally stronger against USD. The main exception to this is USDRUB which is currently up 1.3% on very volatile trading. CBR announced that it would be buying $100-200mn of FX in the market each day in order to replenish reserves. While the amounts are relatively small, it is another sign from the CBR that they don’t want RUB to appreciate too much. The strongest performer in EM is KRW, up on buying ahead of the BOK meeting on Friday—the consensus is for no change in rates.”
“Fixed income markets are mainly firmer: 10y UST –2.7bps, 10y bunds –0.2bps. Asian and European equity markets both mixed with relatively small moves.”
“Brent Oil is up 0.3%. Base metals mixed, precious metals are small up.”