Policy Speculations Drove Aussie, Euro and Dollar Lower Speculations on interest rates and monetary policy were the main drivers in the forex markets last week. Aussie and Euro were the two weakest major currencies. There were talk that RBA would eventually cut the benchmark rate to counter the recent move by banks that lifted interest rates. Also, RBA noted in a report there was some cool down in the property markets. Eurozone inflation turned negative again, intensifying the talk the ECB needs to extend or even expand the quantitative easing program eventually. Meanwhile, dollar closely followed as one of the weakest and market pare back bets on 2015 rate hike by Fed. As of Friday, fed fund futures were only pricing in 30% chance of a December hike. Indeed, the odds for rate hike by March is only 52%, notably lower than 62% chance priced in a month ago. Full Report Here... | 
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