20 Jun 2014
Currencies tracking central banks - BBH
FXStreet (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman explained that the main theme of the market currently surrounds the central banks.
Key Quotes:
"It was a busy week for currencies and rates as markets digest the developments surrounding the Fed, ECB, and BOE. We note that currencies continue to loosely track moves in the rates markets."
"Looking at the closing prices in 2-year sector, for example, the spread between US and German yields rose during the week to a high of nearly 45 bp (in favor of US rates), but is now back around 41 bp, lower than last Friday’s close. The euro started the week on the defensive, trading sub-1.3520, but ended up breaking the recent range on the top side by moving above 1.3600.
Key Quotes:
"It was a busy week for currencies and rates as markets digest the developments surrounding the Fed, ECB, and BOE. We note that currencies continue to loosely track moves in the rates markets."
"Looking at the closing prices in 2-year sector, for example, the spread between US and German yields rose during the week to a high of nearly 45 bp (in favor of US rates), but is now back around 41 bp, lower than last Friday’s close. The euro started the week on the defensive, trading sub-1.3520, but ended up breaking the recent range on the top side by moving above 1.3600.