NZD up, JPY Down in Riskon Market, Focus Still on Brexit

Note  The table above is updated before publication with the latest consensus forecasts. However, the text charts are prepared ahead of time. Therefore there can be discrepancies between the forecasts given in the table above and in the text charts. 

Rates as of 0500 GMT

Market Recap

Again, a relatively slow day without any big moves.

I cant find much explanation for the moves. There doesnt seem to be anything out there that wouldve pushed up CHF so much if anything it was generally a riskon day in both the equity and FX markets, as shown by higher commodity currencies and a lower JPY.

The SP 500 and NASDAQ indices moved further into recordhigh territory, aided by some progress towards a new fiscal stimulus bill. The White House has proposed a 916bn plan that does not include reviving 300 weekly enhanced unemployment benefits, though it would extend other federal unemployment programs set to expire in the coming weeks. Instead, it would include direct payments of 600 per person, half the amount that the original plan in March included. The Democrats said the cuts to unemployment insurance benefits from a proposed 180bn to 40bn were unacceptable, but at least theyre talking, which was more than was going on a few days ago. 

The crosscurrency basis swap for EURUSD and several other crosses are turning increasingly negative, a sign that USD funding needs have increased ahead of the yearend turn. The increasing cost of borrowing USD does not seem to be severe enough…

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