Rates as of 0400 GMT
It was Europe day in the FX market yesterday. Ive added NOK and SEK to the tradeweighted indices table today to make this point the four major European currencies were the four bestperforming ones. Part of this was just USD weakness as US bond yields fell more than bond yields elsewhere.
Part though may have been enthusiasm for the EU as the EUs various rescue plans overcame some potential hurdles Finlands parliament approved the EUR 750bn EU rescue fund, making 19 of the 27 countries that have now approved it. Also Germanys constitutional court rejected a case against the European Central Bank ECBs Public Sector Purchase Program PSPP, the ECBs EUR 2.4tn flagship bondbuying program. And ECB Governing Council member and Banque du France President Villeroy de Galhau said the French economy would grow at least 5.5 this year. He also said theres no risk of a return of lasting inflation in the euro area and so ECB policy will remain very accommodative for a long time, but that part wasnt so important, probably because everyones policy will remain accommodative for a long time.
If we look at the change in CHF and SEK vs EUR, we can see that they were virtually unchanged on the day. That suggests the main move was EURUSD, and its not clear whether it was EUR strength or USD weakness.
Note though that NOK grey line did weaken significantly vs EUR. This was because of comments by Russias representative at the UN International Atomic Energy…