Forex Report
The USD continued its recent advance and is trading higher against every major currency. The USD Index is higher for a fourth straight day, and is set for its strongest week since August. EUR/USD and CABLE fell to weekly lows, while USD/JPY is up .83%. USD’s strength comes in spite of expectations that the FED will cut rates, suggesting the forex market has already factored in a 25bps. The JPY is weaker vs. all major currencies, as today’s global surge in equities has lead to an increase in the carry trade. The carry trade has also hit the CNF, falling to its lowest level against the USD. Cable has come under selling pressure on expectations of slower growth and speculation the BOE will have to begin cutting rates in the near-term.