USD WEAKENS AS MARKET RUSHES TO EXIT
• USD is weak with the European currencies outperforming after Fed.
• A dovish Bernanke reminds markets that both employment & inflation are below where they prefer; traders rush to close long USD positions.
• CAD is strong on broader USD move & relative oil pricing.
• EUR is strong as traders cover short positions—we make no change to our year‐end forecast of 1.25, but for now it is stuck within range.
• GBP is strong on broader USD shift.
• JPY is strong as BoJ proves a non‐event & machine orders are strong.
• AUD is strong on broad move after a mixed employment report.
Read the full report: FX Daily
Scotiabank