The CNB concluded its normalisation cycle
|Markets
EUR/USD: dollar took the upper hand again on decent eco data and as global optimism dwindled recently. Euro bulls have been betting on a recovery of the economy but that has not been confirmed by the data (yet).
Sterling's impressive rally stalled. The pound is now trapped within a narrow sideways range near 0.86 as markets await the election outcome on December 12.
The USD/JPY rebound starting in early September is running into resistance as the reflation trade loses momentum. 108 acts as short term intermediate support.
Brexit optimism has pushed the export oriented Czech koruna further higher before meeting with resistance at the low end of the 25.5-26 sideways range. The CNB concluded its normalisation cycle, but probably won't cut policy rates soon.
The Hungarian forint is again nearing all-time lows despite (very) solid growth. Rising inflation bites while the Hungarian central bank shows no willingness to raise rates anytime soon.
Emerging market currencies whipsawed, retracing earlier gains on trade optimism. Markets want to see action (i.e. signing of a partial trade deal) rather than just words.
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