Forex

Since the week starting Monday, 17 October (black dashed vertical), the US 10-year real rate has been drifting lower (blue arrow top chart). An appreciation in the EURUSD (red arrow bottom chart) accompanies this.

Yesterday’s accounts from the last US Fed policy meeting, showed that officials are looking to slow the pace of rate hikes, which weighed on the greenback and sent the pair higher

The Aussie takes advantage of the greenback’s weakness and the latest commentary form the head of the RBA, to move higher today, after its poor weekly start

The pair surged more than 1.5% on Monday entering its second straight positive week, as it reacts from the worst weekly performance in two-decades, earlier in the month

The pair comes from its first negative week since mid-October and enters its third straight losing day, as markets continue to evaluate the policy path by the two central banks

The United Kingdom was in the spotlight this week, with a series of economic data and the government’s budget, but the pair had limited reaction

The pair finds support this week, but runs a very bad month, as markets pare back their expectations around the Fed’s tightening path

The pair extends its advance this week, helped by encouraging data from Eurozone and the greenback’s post-CPI demise, as market try to look past renewed geopolitical tensions

The pair rises today after the mixed jobs report, as markets brace for more economic data from the UK over the coming days and the update on the government’s economic plan

The pair collapsed to its worst week since 1998, after the moderation in US CPI inflation, but rebounds today as the monetary policy deferential remains unfavorable

The pair concluded its fourth straight profitable week as expectations around the Fed’s tightening path have eased, but shows indecision today, ahead of key resistance confluence