Forex Flash: Deep Dive: be careful of bouncing currencies – BBH
FXstreet.com (Barcelona) - Brown Brothers Harriman analysts note that like a beach ball pushed under water, the Euro has bounced back across the board as Juncker's ill-thought comments were isolated.
Elsewhere they see that the Yen has returned quickly towards its recent lows as Japanese officials make it clear that the correction from what they call "excessive weakness" is not over.
Looking at the price action they note that the dollar is weaker against most other major currencies, but the dollar bloc is under performing. They write, "EURUSD recovered overnight but not enough to test the $1.34 level while EURCHF is close to 1.2450. Sterling lagged the move with GBPUSD trading near $1.6020. USDJPY is back in the up trend at 89.40. AUDUSD is the under performer on the day, falling to 1.05 on weak jobs data in Australia. Yields in major fixed income markets are as much as 5 bp higher while EU periphery yields are flat. Asian stocks closed mostly lower but the Euro Stoxx index and US equity futures are flat."
Elsewhere they see that the Yen has returned quickly towards its recent lows as Japanese officials make it clear that the correction from what they call "excessive weakness" is not over.
Looking at the price action they note that the dollar is weaker against most other major currencies, but the dollar bloc is under performing. They write, "EURUSD recovered overnight but not enough to test the $1.34 level while EURCHF is close to 1.2450. Sterling lagged the move with GBPUSD trading near $1.6020. USDJPY is back in the up trend at 89.40. AUDUSD is the under performer on the day, falling to 1.05 on weak jobs data in Australia. Yields in major fixed income markets are as much as 5 bp higher while EU periphery yields are flat. Asian stocks closed mostly lower but the Euro Stoxx index and US equity futures are flat."
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