DXY is struggling mightily to get anywhere.
AUD follows EUR.
Lead boots plod on.
Got to be quick to grab gold these days. Oil in all sorts.
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Metals no bueno for development.
Massive miners good down channel.
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Life for EM?
Not if credit score has its approach.
Fed cuts are disappearing.
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Shares no likee.
AUD is the brand new European super-currency.
We’ve seen rally in beaten-down US shares, however how far can it go when so many maintain DXY and need to diversify?
Enter EUR.
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Europe has a protracted solution to go up when it comes to influx.
Supply: EPFR
$248bn of outflows from European equities since 2020. The super-tanker that’s circulate has simply began to show.
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Supply: BofA
Goldman.
Our FX strategists considered the German fiscal announcement as a transparent tailwind to the forex, due to the implied uplift to area-wide development and the revealed change in German coverage preferences. They then argued that weaker development and better coverage uncertainty within the US ought to disproportionately assist the Euro, due to the doubtless rebalancing of European traders in the direction of home property. Our FX staff sees additional Euro appreciation forward, with EUR/USD reaching 1.20 over the following twelve months.
The final time EUR was at 120, AUD was at 0.77 cents.
AUD follows EUR.
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