3995 and the narrow USD trade-weighted
index to a four-session low.
A boost for exports: At the turn of last year, the Federal Reserve's trade-weighted
dollar index showed that the U.
The pound has lost more than 13 percent in trade-weighted
terms since last year's decision to leave the European Union but Britain's trade deficit with the rest of the world remains huge.
The trade freedom scores were released by The Heritage Foundation and are based on two variables: trade-weighted
average tariff rates and non-tariff barriers (NTBs), from the World Banks most recent data.
The Kuwaiti dinar index (reflecting the currency's trade-weighted
price) was up by 1.
LONDON: Sterling trade-weighted
index fell 1 percent to hit a three-week low on Monday, while the cost of hedging against swings over the coming month traded at its highest since late 2008 on growing concerns over whether Britain will stay in the European Union.
We would firstly note that FX weakness has so far largely been in line with the trade-weighted
basket which the authorities believe is a "more appropriate reference" for the currency than the bilateral rate versus the dollar.
Will it shift to target the RMB's trade-weighted
exchange rate, or will it continue to target the RMB-U.
The weights are now calculated using a fully bilateral trade-weighted
5 per cent against the dollar this year, it has slipped just 4 per cent on a trade-weighted
The 2-year rate differential of the US versus the trade-weighted
G10 has risen to its most Dollar supportive level since 2009, as underscored also by our US economics team bringing forward their date for the first rate hike to Q3.
A setback in stocks has felt overdue; bonds still look dear, as most market participants assume policy rates won't rise for a year at least; rust is growing on the emerging market boom; technology and pharmaceutical sectors are showing relative strength; and the dollar's trade-weighted
index is trading more pro-cyclically.