Market sentiment improved somewhat yesterday afternoon, with the commodity currencies AUD and NZD gaining the most against USD. As for today, we have two G10 central banks deciding on interest rates: The Bank of Canada and the Riksbank. Expectations are for the BoC to hike, but for the Riksbank to stay on hold.
Risk Sentiment Improves Somewhat, but Concerns Remain
The dollar traded lower against most of the other G10 currencies on Tuesday. It lost the most ground against the commodity currencies AUD and NZD, while it gained fractionally only against NOK. The greenback traded virtually unchanged against JPY and SEK.
The comeback of AUD and NZD combined with the fact that JPY surrendered earlier gains to trade virtually unchanged against the US currency suggest that some risk...
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