KBC Market Research Desk
KBC Bank
Currencies
EUR/USD
EUR/USD settled in the 1.07/10 area after the Fed lift‐off. China turmoil had initially only a moderate impact. Finally, global uncertainty reduced interest rate support for the dollar and pushed EUR/USD back to the 1.13 area.
EUR/GBP
Sterling weakness persists. The combination of global uncertainty, a decline in the oil price, disappointing UK eco data and uncertainty on Brexit all conspire to protracted sterling weakness.
USD/JPY
In January, the yen profited from the global risk‐off sentiment. The BOJ cutting interest rates into negative territory didn’t prevent further yen strength. USD/JPY dropped below the key 115.98 support.
EUR/CHF
The Swiss franc declined in January and early February even as global sentiment turned outright negative. ‘Selective’ SNB action apparently prevented safe haven flows running to the Swiss franc .
EUR/PLN
The decline of the zloty in the wake of the formation of a new government slowed. Markets gradually embrace the idea that a change in monetary policy might be less aggressive than previously assumed.
EUR/HUF
The forint is holding stable in a sideways range between 308 and 318. Global uncertainty hardly affected the forint. A further improvement in economic fundamentals gives the forint downside protection.
This non-exhaustive information is based on short-term forecasts for expected developments on the financial markets. KBC Bank cannot guarantee that these forecasts will materialize and cannot be held liable in any way for direct or consequential loss arising from any use of this document or its content. The document is not intended as personalized investment advice and does not constitute a recommendation to buy, sell or hold investments described herein. Although information has been obtained from and is based upon sources KBC believes to be reliable, KBC does not guarantee the accuracy of this information, which may be incomplete or condensed. All opinions and estimates constitute a KBC judgment as of the data of the report and are subject to change without notice.
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