FX Roundup: Market in mixed mode with no dominant crosses
Updated : 16:20
No single currency emerged as the dominant cross in late afternoon European trading on Friday.
At 1528 GMT, the dollar fell marginally against the yen by 0.29% changing hands at JPY121.21. Concurrently, the pound rose 0.36% against the dollar exchanging at $1.5214, while the euro rose 0.32% to change hands at $1.0976.
Continuing with major crosses, the greenback fell 0.33% against the Swiss franc exchanging at CHF0.9844, slipping further below parity in the dollar’s favour during late European trading after the Swiss National Bank left rates on hold earlier in the session.
Jane Foley, senior FX strategist at Rabobank, said, “Recent data suggest that there is sufficient momentum in the US economy to push the various labour market slack measures further down, supporting the FOMC’s confidence in the inflation outlook. Therefore, we see no reason to change our long held call for a December rate hike.”
Meanwhile, the pound was broadly flat against the euro fetching €1.3862, up a mere 0.01%. Elsewhere, the dollar rose against selected commodity-linked currencies; up 0.63% against the Norwegian Krone changing hands at NOK8.6982 in Europe, alongside upticks of 0.45% and 0.97% against the Canadian dollar and Mexican peso, changing hands at CAD$1.3686 and MXN17.3589
Elsewhere, the Australian dollar fell against its US counterpart by 0.89% changing hands at US$0.7216. Concurrently, the New Zealand dollar also fell 0.37% changing hands at US$0.6729 as the Reserve Bank of New Zealand has cut the Official Cash Rate (OCR) to 2.5%, down 25 basis points, and hinted it could be cut further earlier this week.
The fourth this year was widely expected by analysts, and takes the OCR to levels last seen between 2011 and early 2014. Reserve Bank Governor Graeme Wheeler said growth in the New Zealand economy had softened over the year, mainly due to lower terms of trade.
“Combined with increases in the labour supply from strong net immigration, the slowdown has seen an increase in spare capacity and unemployment. A recovery in export prices, the recent lift in confidence, and increasing domestic demand from the rising population are expected to see growth strengthen over the coming year,” he added.