USD: The Buck is, fundamentally, the strongest currency. However, global outlook seems to be forcing the Fed to scale back on their original plan of hiking rates 4 times this year.

More recently, dovish FOMC Minutes gave investors a fresh reason to short the Greenback.

Current Sentiment:  Neutral

Recent News: ⬇️ (Dovish FOMC Minutes)

 

EUR: The Euro is a weak currency, at the moment, with the ECB trying everything in its power to lower its exchange rate. Global turmoil, however, might keep the single currency rallying on safe-haven flows.

A recent dovish Fed has been putting terror events have put upward pressure on the Single Currency.

Current Sentiment:  Neutral

Recent News: N/A

GBP: The Pound isn’t as bad as it seems, at least by comparison, with the BoE member constantly stating that their next move should be a hike. Brexit, however, seems to be a point of concern, dragging the Sterling to multi-year lows.

Current Sentiment:  ⬇️ (Brexit)

Recent News: N/A

 

JPY: Theoretically, the Yen should be one of the worst-performing currencies, given Japan’s situation. Nevertheless – and despite the BoJ’s efforts to depreciate this funding currency – massive rallies are still occurring on safe-haven flows, making the JPY one of the best-performing currencies of 2016.

Current Sentiment:  ⬆️ (Weak USD)

Recent News: N/A

 

CHF: The franc needs to be weak against the EUR in order make the SNB happy. Therefore, any major changes coming from the ECB are likely to be matched by its Swiss peer.

Risk-off sentiment might cause the CHF – like any other safe-haven currency – to appreciate.

Current Sentiment:  ⬆️ (Weak USD)

Recent News: N/A

 

CAD: The BoC is keeping the Loonie on hold, hoping that the depreciation seen in previous months boosts exports. However, the big players see the situation deteriorating in the near future.

At the moment the Canadian Dollar floats in accordance to Crude Oil.

Current Sentiment: Neutral

Recent News: ⬆️ (Stellar Building Permits m/m)

 

AUD: The Aussie is still a neutral currency, although some of the big banks also see this shifting to the downside in a near future.

Being a commodity-linked currency, the Australian Dollar floats according to risk appetite, as well as Chinese data.

Current Sentiment:  ⬇️ (Weak Commodity Prices)

Recent News: N/A

 

NZD: The Kiwi needs to depreciate, according to the RBNZ.

This commodity-linked currency also appreciates with risk-on sentiment and positive Chinese data. GDT is another factor to take into account.

Current Sentiment:  ⬇️ (Dovish Comments from RBNZ)

Recent News: N/A

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