FXstreet.com (Córdoba) - Markets remain in a risk-averse mode, which is translating into broad gains for the US dollar and Japanese yen, according to the Wells Fargo team. "Central banks have been busy over the past 24 hours, including another rate cut in Brazil, a surprise policy easing by South Korea's central bank and a moderate adjustment to the Bank of Japan's policy stance", they say. "Those moves have done little to support market sentiment however".
"The European news flow is relatively light but 'no news is bad news' for the euro at the moment, and the single currency has extended its decline to a new two-year low", Wells Fargo adds. "Acknowledging the fragility of market sentiment, we still believe the recent central bank policy moves are starting to build a basis for an eventual improvement in growth and market sentiment in the second half of the year, which should lead to a reversal of some of the US dollar's recent gains".
"The European news flow is relatively light but 'no news is bad news' for the euro at the moment, and the single currency has extended its decline to a new two-year low", Wells Fargo adds. "Acknowledging the fragility of market sentiment, we still believe the recent central bank policy moves are starting to build a basis for an eventual improvement in growth and market sentiment in the second half of the year, which should lead to a reversal of some of the US dollar's recent gains".
