For all the event risk and market noise which has hit the headlines this week, most major currencies have either stayed in tight ranges versus the Dollar or re-found their footing after temporary wobbles.
The GBP/USD cross, which has been prey to both Brexit-related uncertainty and Fed/Trump gyrations in the Dollar, remains in a tight 1.21-1.22 range. EUR/USD crept up from 1.11 to 1.12 early in the week – a modest move in itself – but has since been treading water with markets seemingly waiting for some guidance from the ECB. Even the Kiwi Dollar, which collapsed over 2% following the RBNZ’s larger than expected 50bp rate cut, has for now at least seemingly settled in a 0.645-0.648 range. At the other end of the spectrum, the safe-haven Swiss Franc – which had made the news for its unrelenting appreciation – has been stable versus the US Dollar around 0.9750 for the past 3-4 sessions.
