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26 Mar 2015
USD strengthened after encouraging US dataflow - ANZ
FXStreet (Bali) - The ANZ Research Team provides an overview of Thursday's FX moves, noting that the USD strengthened after encouraging US dataflow.
Key Quotes
"The USD strengthened overnight after encouraging US dataflow. GBP underperformed, despite the better-than-expected UK retail sales report and remains vulnerable to further weakness."
"The combination of political uncertainty, fiscal consolidation and the prospect that the currency’s strength on a trade weighted basis could further delay the Bank of England’s (BoE’s) tightening cycle are likely to continue to weigh on sterling in the near term."
"It was a mixed session in sovereign bond markets. UK 10-year gilts yields rose around 10bps following the stronger than expected retail sales data, while 10-year US Treasury yields increased 6bps, paring recent strength."
"In contrast, German and French sovereign bonds rallied. Oil prices bounced in the Asian session following the decision by Saudi Arabia to take military action in Yemen, but these gains were later pared. Gold prices broke above USD1,200 per ounce on the geopolitical tensions, while iron ore prices continued to slide."
Key Quotes
"The USD strengthened overnight after encouraging US dataflow. GBP underperformed, despite the better-than-expected UK retail sales report and remains vulnerable to further weakness."
"The combination of political uncertainty, fiscal consolidation and the prospect that the currency’s strength on a trade weighted basis could further delay the Bank of England’s (BoE’s) tightening cycle are likely to continue to weigh on sterling in the near term."
"It was a mixed session in sovereign bond markets. UK 10-year gilts yields rose around 10bps following the stronger than expected retail sales data, while 10-year US Treasury yields increased 6bps, paring recent strength."
"In contrast, German and French sovereign bonds rallied. Oil prices bounced in the Asian session following the decision by Saudi Arabia to take military action in Yemen, but these gains were later pared. Gold prices broke above USD1,200 per ounce on the geopolitical tensions, while iron ore prices continued to slide."