13 Feb 2015
Thursday's recap: USD weak across the board - ANZ
FXStreet (Bali) - The FX Research Team sums up Thursday's key market development, with the USD the main loser after weaker-than-expected US data.
Key Quotes
"The USD weakened through the London session, with initial moves extended following weaker-than-expected US data. Sterling was sharply higher following the BoE’s Inflation Report. In his press conference, Governor Carney also reiterated that the next move in rates was likely to be higher, although the tightening cycle was likely to be very gradual (and GBP will no doubt respond like the NZD did in December when the RBNZ did the same!)."
"Commodity currencies received a boost from the bounce in oil and base metal prices, with the AUD unwinding its decline following yesterday’s weak labour force data. The JPY also strengthened, on the back of comments from BoJ policymakers that further monetary policy easing to boost inflation could damage confidence and weigh on economic activity. US Treasury yields also finished the session lower. European and US stocks advanced, buoyed by the ceasefire agreement between Russia and the Ukraine."
"Markets were unfazed by the inability of euro area finance ministers to reach an agreement to resolve the Greek debt impasse with European sovereign bonds rallying solidly. Given that credit risk has been absent from bond markets for a long time we wouldn’t read too much into that though. Attention will now turn to the follow up meeting between the finance ministers on Monday, with markets looking more concrete signs that progress is being made."
Key Quotes
"The USD weakened through the London session, with initial moves extended following weaker-than-expected US data. Sterling was sharply higher following the BoE’s Inflation Report. In his press conference, Governor Carney also reiterated that the next move in rates was likely to be higher, although the tightening cycle was likely to be very gradual (and GBP will no doubt respond like the NZD did in December when the RBNZ did the same!)."
"Commodity currencies received a boost from the bounce in oil and base metal prices, with the AUD unwinding its decline following yesterday’s weak labour force data. The JPY also strengthened, on the back of comments from BoJ policymakers that further monetary policy easing to boost inflation could damage confidence and weigh on economic activity. US Treasury yields also finished the session lower. European and US stocks advanced, buoyed by the ceasefire agreement between Russia and the Ukraine."
"Markets were unfazed by the inability of euro area finance ministers to reach an agreement to resolve the Greek debt impasse with European sovereign bonds rallying solidly. Given that credit risk has been absent from bond markets for a long time we wouldn’t read too much into that though. Attention will now turn to the follow up meeting between the finance ministers on Monday, with markets looking more concrete signs that progress is being made."