Week Ahead: Long USD Vs Oil Currencies; Bullish AUD/NZD Into RBNZ - Credit Agricole

on , from efxnews.com

The last couple of weeks saw easing from the BoE, the RBA and the BoJ, and the Fed meanwhile presented a slightly upgraded economic outlook in its July statement. With the notable exception of GBP, the central bank’s actions did not have the desired impact on FX. Indeed, both JPY and AUD rebounded while USD weakened. The price action largely confirmed the notion that there are diminishing returns to monetary easing in an environment of falling global yields, weak global growth and inflation. It further highlighted that constructive forward guidance does not count for much so long as the Fed is in data dependent mode. That said, ... (Read the full story)