Earlier this week, we speculate on the low probability and high impact of a change in the FX language in the closing statement of this week of the G7 meeting of finance ministers and governors of central banks in Canada, says the FX analyst of ING, Chris Turner.
The DXY could quote within a range of 99.20-100.20 today
“In the end, the statement said very little about FX apart from reaffirming the commitment to its 2017 statement on FX, namely free floating exchange rates and avoiding competitive devaluations. However, the statement seemed G7 looking at China’s great commercial surplus, although the global investors base could also be looking at the US commercial and budgetary deficits “
“The concerns persist about US Treasury Bonds this summer, as evidenced by the ten -year SWAPS differential from the USA that continues to quote wide in 55 basic points. We are also following the high frequency data in regards 10,000 million dollars in the week until Wednesday, marking a fall of 30,000 million dollars since the beginning of April.
“Before the long weekend in the US and the United Kingdom, the volatility carried out in FX continues to decrease. However, negotiated or expected volatility remains relatively high for the EUR/USD and the USD/JPY. Here, the negotiation levels at one month are maintained above 8% and 11%, respectively, which suggests that investors are not comfortable by setting levels of volatility prior to volatility ‘Day of Liberation’ still.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
