Yen's selloff accelerated rather steeply last week, on the back of surging commodity and energy prices. Dollar was also pressured this time, as treasury yields retreated and on late rally in stocks. Euro was not to far away, as pressured by selloff in crosses. On the other hand, commodity currencies ended broadly higher, as led by Kiwi and Aussie. Sterling was also strong as aided by increasing speculations of an early BoE rate hike. As noted before, US stock indexes are probably ready to resume their long term up trend. Industrial metal like copper could also be staging an upside breakout too. Such developments will continue to exert much downside pressure in Yen, while lifting commodity currencies. Dollar's upside, however, could be capped as rise in yields loses momentum. |
