NZD is the strongest. CHF is the weakest
The NZD rose against all the major currencies in February, making it the strongest currency for the month. The CHF fell against the major currencies making it the weakest.
The NZD benefited from having higher rates. Although Governor Wheeler and the RBNZ think the currency is overvalued, the central bank is not likely to cut rates any time. The housing market is simply to strong. Commodity prices, although still nearer low levels, stabilized in February.
The CHF benefited from a continued recovery from the huge run up after the surprise SNB de-peg in January. SNB officials warned that the currency was still overvalued and that the SNB could lower rates even more negative. So although the peg, is gone, the threat from rates remains.
The USD was mixed for the month, rising against the EUR, JPY, CHF but falling versus the GBP, CAD, AUD and the NZD. It was weakest against the NZD and the GBP.
The GBP rose against all currencies with the exception of the NZD. After the sharp fall took the GBPUSD to a low of 1.4950 in January, the pair pushed higher in February. The expectations that the BOE was likely to raise rates in 2015, and more bullish technicals helped the pair recover.
