A quiet day on the data front at the end of last week meant that we didn’t see any significant market movements. The Japanese yen continued with the strength it carried throughout last week, climbing for the fifth day in a row – the longest stretch of gains in 10 months. The Japanese yen’s strength on Friday came about as traders looked to buy in to safe-haven assets ahead of the weekend’s referendum in Crimea. For the same reason we saw the Russian rouble drop off to week-long lows against sterling.
The Australian dollar lost ground following a release from Goldman Sachs downgrading their forecast for the Antipodean currency, stating that Australian dollar weakness over the next 6 months was one of their ‘strongest conviction views’.
Over the weekend the Peoples bank of China (PBOC) announced that as of today, it has loosed the trading band to which the Chinese yuan is pegged to the US dollar to a 2% variance (from 1%).
Looking forward, it promises to be an interesting week for the Canadian dollar, with manufacturing, inflation, and retail sales figures, as well as a speech from the central bank Governor. Overnight tonight we have monetary policy meeting minutes out of Australia. Later in the week we have growth figures out of New Zealand, and a statement from the Japanese central bank governor.
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