1Finance

Week Ahead: The question about the importance of the ‘Yellen put’ as a driver of the risk rally will become more relevant next week

• "The question about the importance of the ‘Yellen put’ as a driver of the risk rally will become more relevant next week when US data could highlight the temporary nature of the latest economic slowdown and the continuing tightening of US labour market conditions. Given how entrenched the latest USD-bearishness has become, however, we think that it would take positive data surprises to bring the latest USD-bashing to an end."
• "Elsewhere, AUD could continue to struggle ahead of the RBA although we would prefer to express any bearish views against other commodity currencies like NZD or CAD. The latter could remain resilient if the upcoming labour data adds to the stream of positive surprises from NZ and Canada. We maintain a constructive view on SEK but recognise that investors could turn more cautious after the latest disappointing data. JPY could remain resilient given that the BoJ’s inaction fuelled concerns about its officials’ ability to boost growth and inflation."

the source