While RBA, Fed and BoE announced rate hikes last week, the impacts and reactions were rather delivered. RBA's larger than expected hike was well received and helped Aussie secured the first place, even though it pared back much gains on risk-aversion. On the other hand, BoE's announcement was considered dovish, with warning of recession, and hammered the Pound broadly lower as the worst performer. . Reaction to Fed was mixed and volatile. But in the end, markets seemed to be still buying in the prospect of a 75bps hike next, as seen in the late selloff in stocks. Dollar followed sterling as the second strongest. But it's strength against Euro was capped by hawkish ECB comments. The greenback's rally against Yen was also capped by risk-off sentiment. |
