After a brief recovery, risk sentiment turned sour again towards the end of the week. Solid data from the US that solidify expectation for continuous aggressive Fed actions was a factor. Strong rebound in oil price also raised concern of a second wave in inflation. The overall development suggests that risk sentiment remains fragile, and extended selloff in stocks and bonds ahead could give Dollar further boost ahead. Dollar did rally broadly towards the end of the week, but that wasn't enough to push it through near term resistance levels against most major rivals. Greenback buyers were probably still on the sideline, awaiting upcoming inflation data. Indeed, Canadian Dollar eked out the first place for its resilience, while New Zealand Dollar was second only because of its earlier gains. Swiss Franc was the worst performer, followed by Euro and Sterling. |
