Forex Flash: Markets consolidate for second day – Wells Fargo
FXstreet.com (Barcelona) - The U.S. dollar is stronger against most foreign currencies as markets consolidate for a second day, while comments from policy makers are also a notable theme of today's trading notes Nick Bennenbroek, Head of Currency Strategy at Wells Fargo.
He sees that the Euro is lower, reversing earlier gains, as investors have responded to both positive and negative comments on the euro over the past 24 hours, while the other major European currencies are weaker as well. Japan has of course elevated its currency rhetoric in recent weeks, prompting the attention of Russia's central bank.
Bennebroek adds, "The deputy chairman of Russia's central bank said Japan is weakening its currency and others may follow, noting that the world's leading economies are on the brink of a 'currency war'. The yen is stronger today, but that appears to be a broader correction to the sharp declines of recent weeks, rather than a specific reaction to Russian central bank comments."
Elsewhere, he notes that the dollar-bloc and most emerging currencies are lower, with activity perhaps unsettled by the range of comments and with global equity markets generally lower today. He writes, "With the corrective price action of the past couple of days we have turned more neutral on the FX outlook, though we maintain a slight overall upward bias for most foreign currency over the near-term."
He sees that the Euro is lower, reversing earlier gains, as investors have responded to both positive and negative comments on the euro over the past 24 hours, while the other major European currencies are weaker as well. Japan has of course elevated its currency rhetoric in recent weeks, prompting the attention of Russia's central bank.
Bennebroek adds, "The deputy chairman of Russia's central bank said Japan is weakening its currency and others may follow, noting that the world's leading economies are on the brink of a 'currency war'. The yen is stronger today, but that appears to be a broader correction to the sharp declines of recent weeks, rather than a specific reaction to Russian central bank comments."
Elsewhere, he notes that the dollar-bloc and most emerging currencies are lower, with activity perhaps unsettled by the range of comments and with global equity markets generally lower today. He writes, "With the corrective price action of the past couple of days we have turned more neutral on the FX outlook, though we maintain a slight overall upward bias for most foreign currency over the near-term."
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