Simon Derrick
Simon Derrick
bank ending japan large lead moves near people raising
Even a hint that the Bank of Japan may be getting near to ending its quantitative easing, and raising rates, is going to lead to large moves in the yen. People have been so positioned for it to go down.
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A batch of downbeat US economic data underpinned some market doubt over the Fed's inclination towards higher interest rates.
altering assume hearing last markets members percent pricing quarter rates since third
If you assume that the markets are effectively pricing in 2.75 percent rates by the end of the third quarter and have been doing that really since the end of last year, there is nothing that they are hearing from ECB members is really altering that perception.
demand easily encourages environment lost remarkably robust support underlying
Sterling has been remarkably robust in an environment where it could easily have lost ground, that encourages me that there has been some real underlying support and demand for the currency.
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It's still likely that interest rates will continue to go up in the U.S., so that favors the dollar over the medium term.
continue dollar rates ultimately
There has been a re-evaluation of people's expectations as to where the U.S. rates can ultimately end up. I think we will continue to see dollar weakness.