Near-term dollar outlook is nuanced – BBH

By FXStreet Research Team at BBH, notes that the US dollar fell against all the major and most of the emerging market currencies last week as the risk appetites have been rekindled, and the yen has gone from the best performer in recent weeks to the worst over the past week.

Key Quotes

“Oil prices are up 35% since the February 11 low to approached $35 a barrel. While still low, has taken some sting off deflationary fears, and helped ease some concern about financial exposures to the energy sector. The 10-year US breakeven has risen for nine consecutive sessions through March 3 to 1.55% from nearly 1.11% on February 11. It was below 1.50% when the Fed hiked in mid-December 2015.

One of the noteworthy exceptions to this risk-on phase in gold’s rally. It was up 4.2% last week to its best level since February 2015. It broke out of the a triangle pattern, which now targets the $1300-$1320 area. In January and the first half of February, gold was moving in the opposite direction of stocks, and now it is rising alongside equities.

The euro peaked on February 11 near $1.1375. It …read more

Source:: FX Street