Dollar's Weak Streak Continues, Sterling and Antipodean Currencies Shine
| Action Insight Weekly Report 11-25-23 |
| Dollar's Weak Streak Continues, Sterling and Antipodean Currencies Shine |
Dollar ended as the weakest performer last week, with it poor performance aligning with broader rally in both stock and commodity markets, underpinned by growing investor sentiment favoring US economic soft-landing. Furthermore, minutes from FOMC meeting suggested a potential softening of Fed's hawkish stance. As risk-on sentiment seems poised to continue in the near term, potentially until the next FOMC rate decision, Dollar may continue to face downward pressure. Japanese Yen, ranking as the second weakest currency last week, saw a reversal of some of its recent gains. The lack of fresh stimuli in the market meant there wasn't enough impetus for Yen buyers to drive further appreciation of the currency. Euro ended up as the third weakest, struggling in its crosses despite improvements in economic data. Sterling emerged as one of the top performers of the week, ranking third. Its strength was driven by improved economic outlook and comments from officials at BoE. Australian Dollar stood out as the second strongest, supported by hawkish RBA minutes, as well as rallies in key commodities, particularly Iron Ore and Copper. New Zealand Dollar claimed the top spot as the strongest performer. Market participants are now eagerly awaiting RBNZ rate decision, scheduled for the coming Wednesday. |
GBP/USD Weekly Outlook GBP/USD's rise from 1.2036 continued last week and hit as high as 1.2613. Initial bias stays on the upside this week for 61.8% retracement of 1.3141 to 1.2036 at 1.2716 next. On the downside, below 1.2523 minor support will turn intraday bias neutral and bring consolidations first, before staging another rally. | |
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