Flash: Charting AUD weakness – BMO Capital Markets

FXstreet.com (New York) - The lurch lower in the AUD across the board and broad SEK weakness were the primary points of interest fundamentally earlier in London today, whilst fluctuations in the GBP appeared mainly to be a product of month-end flows and quite possibly some pre-BoE/ECB positioning as well, notes Stephen Gallo at BMO Capital Markets.

Key quotes

“The persistent softness in the USD throughout July probably already largely reflects the risk of a surprisingly dovish FOMC statement tomorrow.”

“Given our latest thoughts on the AUD prior to today, we were entirely sideswiped by Governor Stevens’ overnight remarks, and we pin the bulk of the move lower in the currency on the following factors, with a specific focus on some of the things we might have previously missed.”