Forex Forecast

Faith in BoJ Divergent The past 24 hours have not been pleasant for yen pairs. Although high-beta assets and asset classes have held well,

ECB Meets, Euro Risks Today the European Central Bank and the Bank of England hold their monthly policy meetings. Neither central bank is set to make any changes.

Sizing Dollar Data Risk The greenback has not yet fully achieved high-beta status, but last week’s heavy dollar buying to ride the rise in

EURCHF Shorts Unstuck? EURCHF has not had the best of starts to the week as investors are opting for an abundance of caution amid rising volatility.

ECB Lessons for BoJ The Bank of Japan pledged last week to increase the frequency of JGB purchases again to reduce volatility in government bond markets.

Reserve Stagnation Boosts Buck In their latest Macro Keys (May 29th), our Emerging Market strategy team highlights that the current round of weakness in EM FX is likely to be with is for some time.

Capex Comforts Australian Dollar We remain cautious on the Australian dollar given the risk the Reserve Bank of Australia will cut interest rates again from 2.75% this year.

Confidence Cushion The dollar’s favourable response to consumer confidence figures released on Tuesday has demonstrated how risk-currency status for the dollar can only be generated through a virtuous data cycle.

CAD After Carney Tomorrow (May 29th) Mark Carney will preside over his final Bank of Canada policy decision.