Last week: Since the close on November 14th, the USD has gained over one percent against JPY, AUD and CHF and over 0.5% against EUR, SEK, NZD and NOK; while CAD is the lonely currency to have gained 0.5% against the USD. The DXY has broken above its range to fresh highs and we expect upward pressure to continue. The driver of this recent strength has been the combination of strong U.S. data, including a tick higher in inflation; juxtaposed against a further loosening in policy at the major global central banks, including the PBoC rate cut, President Draghi’s comment that the ECB will do what they must and a weak domestic Japanese backdrop.
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