Limited, or at least short-lived price action in FX markets was the theme last week. The Euro, Sterling and Australian Dollars were broadly unchanged versus the US Dollar at around 1.120, 1.305 and 0.710, respectively. GBP/USD did exhibit more pronounced intra-day, Brexit related volatility.
Kiwi Dollar
The Kiwi Dollar continued to weaken, shedding another 1% in trade-weighted terms and hitting an 8-week low. The Kiwi Dollar has depreciated over 2% since the Reserve Bank of New Zealand policy meeting on 27th March at which the central bank announced that its next rate move was more likely to be a cut than a hike.
Swiss Franc
The USD/CHF cross hit parity last week for the first time since 19th March, contributing to the Swiss Franc weakening about 0.5% in trade-weighted terms. With global equities up another 2% last week and reports that US-China trade negotiations may be making tentative progress, the safe-haven Swiss Franc has seemingly become less appealing at the margin.
