Currencies: Further gains in the likes of NOK and AUD – TDS
|NOK lead gains (+1.5% vs EUR), while safe-havens have underperformed their G10 counterparts. The US dollar has also weakened across the board, with Cable +1.6% and USDCAD -0.8% to 1.4347, analysts at TD Securities inform.
Key quotes
“We keep our focus situated on risk assets and developments on Capitol Hill. Expectations for a fiscal package have helped to improve sentiment, but we see this as still highly fragile.”
“We think we are moving towards a more traditional risk-driven dynamic for currencies. As such, should equities rally further we would look for further gains in the likes of NOK and AUD.”
“We are generally skeptical that the power rally in risk can be sustained without evidence of a matured contagion curve.”
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