JPY and Gold weak, but USD strength fades elsewhere - AmpGFX

Greg Gibbs, Director at Amplifying Global FX Capital, notes that in the week or so after the Trump election, during the rapid phase of the rise in global bond yields, the USD was broadly stronger against most currencies, although stable against GBP.

Key Quotes

“More recently, the foreign exchange market has shifted towards weaker JPY and gold prices, while other currencies have been stable or stronger against the USD.”

“EUR bottomed two weeks ago and surprised many with a rise to a three-week high after the No result in the Italian referendum and resignation of PM Renzi on the weekend. GBP has strengthened in the last week to a two-month high.”

“Commodity currencies also bottomed in the week after the Trump election and have firmed since last week.”

“Emerging market currencies have been mixed. Lagging most other currencies on average, but on balance stable in recent weeks.”

“The weakest currencies have been the safe-havens, JPY, and gold, with strength in recent weeks returning to the higher yielding and growth-leveraged currencies.  The market is taking on a more classic risk-on appearance.”