The crown has fallen to a 16-year low. This happened on Friday and the Swedish central bank has also joined its counterparts. Europe and Canada have a cautious outlook and the Euro also experienced some losses. It fell to a 20-month low and investors have also expected a lot of broad weakness this year. The FED did turn neutral this year and other banks have certainly followed suit. This has maintained a huge difference in interest rates and this is most certainly going to work to the dollar’s advantage.
The European Central Bank has also tried to offer a cheap loan to various banks. The Bank of Canada has stated that the timing of this combined with the uncertainty regarding pricing hikes could have an impact on expectations. The crown fell on Friday and this is the weakest that it has been since August 2002. This came a day after the Swedish Central Bank manager struck a bad note in a large statement to parliament. Data has also shown that Swedish housing prices have fallen as well. This came after the ECB’s decision to try and push back the first crisis interest rate. This is set for the year 2020 and it is also pulling bond yields across the Eurozone. The Euro was somewhat higher in Friday, but it then headed for a 1.5% drop. This is the biggest decline in well over a year. On the other hand, you will also see that the dollar has reached a 2019 high. This is against a huge range of currencies overnight. Traders in the US would fare much better in Europe over the next coming months even though there are some soft patches in the US Economy. This has been reflected in the bond markets and the yield gap between the 10-year US debt. This is comparable to the US government data.
Investors expect the dollar to drift before the US job data came in. Economists have polled by the Reuters forecast and they showed that over 180,000 jobs were added in the US last month. Lower interest rates in Europe really does mean that the dollar is far more likely to rise but by the looks of things, US labor is going to decide how far this goes.