Financial markets continue to look for the Federal Reserve and the ECB to begin monetary policy easing cycles in June, while expectations for the Bank of...
The US dollar has risen against the euro and the pound even though policy rate differentials have been very stable, particularly with respect to the UK.
Euro/US dollar has rarely strayed from a 1.05-1.10 range all year while, more recently, US dollar/yen has become stuck at a single level – which is 150.
G10 FX volatility remains low with implied one-month euro/dollar volatility below 7% right now, or around a half of the level that we were seeing a year ago.
The last week’s Fed, ECB and BoE meetings have been notable for the slightly more dovish, or hopeful comments from bank leaders.
We clearly don’t know if a post-COVID world is just around the corner or some distance away. But slowly and surely, things should improve, and, as they do, thoughts will...
The dollar remains on a firmer footing and the euro is in the firing line. These trends seem unlikely to change in the near term.
Both the ECB and Fed have announced new monetary policy strategies in the past year. And both would appear to imply that, for now at least, policy will be run in a...
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