Risk sentiments continued to recover last week as Fed officials indicated they would be patient before making the next rate move. Positive developments of US-China trade talks also helped. One notable development was the rebound in US treasury yields as 10-year yield reclaimed 2.7 while 30-year yield is back above 3.0. Japan 10-year JGB yield also turned positive These are signs of stabilization in the financial markets. The recording setting government shutdown in the US is so far having little impact on the markets too. As a result, Yen ended as the weakest one for the week, followed by Dollar, and then Swiss Franc. New Zealand Dollar was the strongest, followed by Australian Dollar. This is a rather reasonable result of return of risk appetite. Sterling ended as the third strongest as the Brexit parliamentary vote is approaching and the chance of no-Brexit is rising. Canadian Dollar was also strong, but it suffered some setback as oil prices pullback quite notably on Friday. Brexit is set to be the major focus this week. |
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