Market insight: USD has been on the defensive, USD/SEK bears take most advantage - Scotiabank
|Analysts at Scotiabank explained that the USD has been on the defensive against the G-10 currencies all week as the clock ticks down to the imposition of tariffs tomorrow and remains mostly soft against is peers on the session today.
Key Quotes:
"No currency has taken more fuller advantage than the SEK this week; a 0.5% rise against the USD today brings cumulative gains on the week so far to 2.5% as investors adjust to the risk of an earlier than expected Riksbank rate hike this year."
"The SEK remains the weakest G-10 currency in YTD terms, however."
"Asian equity markets remain soft for the most part amid the focus on US/China trade and local currencies were lower on the day - although losses for the CNY were very limited."
"European stock markets – and US futures – remain well-supported, however. Major fixed income markets are mostly lower as a consequence, with 10Y bond yields around 2bps higher on the day."
"Relatively calm markets are supporting the firmer MXN tone that has emerged following the weekend’s presidential election, with the peso up modestly versus the USD ahead of local consumer confidence data and Banxico policy meeting minutes at 10.00ET."
"US data: FOMC meeting minutes."
"The US holiday suggests a slow-ish end to the week (despite US NFP data being released tomorrow) but the USD seems poised to retain a soft bias, albeit within established ranges, for now."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.