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Weekly FX Chartbook: Election Volatility and Tech Earnings Take Centre Stage

Forex 7 minutes to read
Charu Chanana 400x400
Charu Chanana

Head of FX Strategy

Key points:

  • USD: Biden’s withdrawal will bring dollar’s focus back on fundamentals
  • JPY: BOJ rate hike bets and Fed’s rate cut, along with strategic intervention risks, could bring more gains
  • GBP: UK’s political stability will be highlighted once again with US political risks escalating
  • CAD: Another BOC rate cut could put CAD on the backfoot
  • CNH: No sense of relief from reversal of Trump trades, as economic slowdown remains in focus
22_FX_Weekly
The US dollar managed to end the week higher as Trump Trades ensued. Safe-havens CHF and JPY were also higher while activity currencies such as NOK and NZD underperformed.
22_FX_Momentum
Our FX Scorecard once again showed GBP topping the chart while NOK and NZD came in at the bottom amid downside inflation surprises.
22_FX_Positioning
The CFTC positioning data for the week of 16 July saw speculators cut the long positioning in US dollar by 33%. Longs were added to GBP, EUR and AUD, while shorts were covered in JPY. NZD long positioning was cut, and shorts were added in CAD and CHF.
22_FX_Views

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