The kiwi is currently the lead gainer in trading this week
Major currencies bloc changes versus the US dollar so far this week
The kiwi has benefited two-folds with cross-flows against the aussie helping to support a move higher alongside more steady Q2 inflation data seen earlier in the week. That is allowing buyers to challenge key resistance levels in NZD/USD and finally look poised to chase a move higher after closing above the 200-day moving average yesterday.
Meanwhile, on the opposite end, the pound is the laggard after being beaten down on the back of renewed focus towards Brexit uncertainty. The currency did recover slightly against the dollar in the past few sessions but EUR/GBP is still holding near fresh six-month highs and is more accurate in depicting sentiment in the pound currently.
Other major currencies saw more choppy trading against the dollar so far this week with the greenback having gained some ground on Monday and Tuesday before gains eased up over the past few sessions into today.
The gains in the yen and the aussie have largely came on the back of today's performance while the euro, loonie and franc are catching back up a little after some mild weakness to kick start the week.
Besides the two extremes (kiwi and pound), trading so far this week has more of a choppy feel as traders and investors continue to wait on fresh central bank and trade developments. Central bank focus remains paramount at the moment with the ECB (next week) and the Fed (the week after next) set to steal the spotlight as we close out the month.
As such, until we get more clarity from that, it's hard to draw much conclusions from the moves so far this week (except for the pound) in my view. As we wrap up the week, I wouldn't expect the mixed mood to change all too much but let's see if we get any surprises.
