Weekly FX Chartbook: ECB and Bank of Canada likely to cut rates

Weekly FX Chartbook: ECB and Bank of Canada likely to cut rates

Forex 5 minutes to read
Charu Chanana

Chief Investment Strategist

Key points:

  • USD: Two-way risks, but asymmetry persists with upside limited
  • EUR: Hawkish ECB rate cut on the radar
  • JPY: Mexico and India election outcomes could fuel more carry trades
  • CAD: BOC rate cut is not fully priced in
  • CHF: Inflation upside could prompt FX selling
CHFJPY was the FX play for the last week as SNB hinted at FX-driven upside pressures to inflation could prompt FX selling, while JPY remains the preferred funding currency in carry trades. Disclaimer: Past performance does not guarantee future performance.
Our FX Scorecard shows momentum in Silver may be weakening after strong gains last month.
Forex COT to the week of May 28 saw dollar longs pared for a fifth consecutive week. Fresh longs were added further to EUR and GBP while shorts were covered in AUD and CAD. NZD positioning turned to a net long from a short, while shorts were added in JPY and CHF.

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