12 August 2018

1 mins

FX Week: EUR, GBP and NZD fall while JPY outperforms

With the RBNZ communicating a more dovish approach to monetary policy, the NZD has fallen to levels last seen in March 2016.

EURUSD: Brexit concerns and soft German data have contrasted with stronger U.S inflation and resulted in EURUSD having the softest weekly close since July 2017.
USDJPY: As the U.S. announces new tariffs on China, who retaliate with “an eye for an eye” approach, escalating trade tensions have resulted in JPY outperforming rival currencies after enjoying support from safe haven bids.
GBPUSD: Pounded by continued uncertainties over Brexit, sentiment on sterling continues to sour and GBPUSD has fallen to new 2018 lows as markets chose to overlook constructive Q2 2018 GDP data.
NZDUSD: With the RBNZ communicating a more dovish approach to monetary policy, the NZD has fallen to levels last seen in March 2016.

Source: Emirates NBD Research, Bloomberg