 Dollar rose broadly last week as markets received Fed's hawkish rate hike rather week, despite initial hesitation. However, the greenback was just the second strongest, overshadowed by Canadian Dollar. Stronger than expected GDP data from Canada solidify the case of October hike by BoC. Furthermore comments by BoC Governor Stephen Poloz suggested that it's cycle is not over yet. Sterling was the third strongest one as Brexit moved to the back stage, awaiting further developments. Swiss Franc ended as the weakest one mainly on surging global treasury yields. Euro followed as the second weakest after Italy raised budget deficit target, not only for 2019, but for two more years afterwards. The lack of positive support to the Swiss Franc from Italy budget jitter argues that the Franc's rally since mid-July was mainly due to emerging market problems, like Turkey and Argentina. The Franc didn't care much about Italy so far. Yen was the third weakest, partly due to strength in treasury yields outside Japan, and partly due to return of risk appetite in Asia. |
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