The USD got off to a cracking start this week, gaining against all the majors, and taking EUR/USD below 1.06 for the first time since April.
Raiko is a member of National Australia Bank’s Global FX Strategy team, which covers currency markets with a focus on the G10 currencies. He is based in Wellington at the Bank of New Zealand, where he serves as currency strategist, producing analysis that informs the NZD view.
Raiko joined BNZ in 2014 from the Reserve Bank of New Zealand, where he was part of the financial markets research team. He provided advice for monetary policy, and covered a range of asset classes, including foreign exchange and fixed income markets.
Raiko holds an Honours degree in Economics from Victoria University of Wellington.
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Friday’s session was hallmarked by comments from ECB President Draghi, which kept markets on the scent for a range of easing measures at next week’s hotly-anticipated meeting.
A rising commodities tide lifted all boats overnight, with an improved tone in risk evident in equities, bonds, and currencies. The AUD outperformed after the RBA stood pat yesterday. It is a very busy day ahead.
The USD stands lower this morning against all G10 currencies, on the back of remarkably weak US durable goods orders. The EUR was a key beneficiary, up as much as 1.6% for the day, before paring those gains to sit at 1.1360.
As we headed into the US employment reports, equities, bond yields, and the US Dollar were all modestly drifting lower. On the release, the positive headlines of strong payrolls growth and lower initially saw those shoot higher, before more than fully retracing those moves.
Risk appetite has continued to improve, with a promise from the Fed to be “patient” in normalising interest rates stoking equities.
This morning, the Fed tried to have its cake and eat it, too, leaving markets slightly confused, if not in outright pain.
Another wild night in markets, and it is slightly to surprising to see equities post some decent gains. The Euro Stoxx 50 closed 2.3% higher with energy stocks leading the way, with some investors likely on the hunt for bargains in the still-negative risk environment.