FX The Week In 60 Seconds

Weekly UpdateFXRates Govt Bonds

This report highlights a transition in the USD toward a fundamental-driven regime, influenced by cooling labour data and FOMC policy uncertainty. It also notes upcoming central bank decisions in New Zealand, Israel, Poland, and Romania.

Key Takeaways

  • 1.The broad USD pullback is supported by cooling US labour data and dovish inflation sentiment from Fed Chair Warsh.
  • 2.USD sensitivity to interest rate differentials has increased as previous distortions fade.
  • 3.Market focus is shifting to FOMC minutes to clarify the internal policy divide, while RBNZ interest rate trajectory is under scrutiny.

Table of Contents

  • The vote counts
  • Currencies
  • No country for bears
  • Disclosures & Disclaimer
  • Analyst Certification
  • Important disclosures
  • Production & distribution disclosures
  • Disclaimer

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Authors

Paul Mackel

Securities

DXYEUR/USDNZD

Themes

AI Disinflationary ImpactFed Policy Normalization

Regions

GlobalMiddle EastUnited StatesNew ZealandIsrael