Daily FNArena News - Currencies

China and Russia have questioned the status of the US dollar as the global reserve currency. TD Securities doesn’t doesn’t like the USD’s prospects either.

The Aussie may be doing well against the USD lately, but the fundamentals still don’t support much hope for sustained outperformance, warns TD Securities’ Stephen Koukoulas.

One of the world’s largest holders of US dollar assets will press for a move away from the dollar at the upcoming G20 meeting.

Changes in direction in equities markets are providing some predictable markers for currency moves.

Moves by policy makers to adopt quantitative easing as another attempt to stimuluate economic activity is likely to weigh on the euro and yen against the US dollar according to Danske Bank.

Standard Chartered’s analysis suggests seasonal factors should see the yen weaken after the end of the Japanese financial year in March.

Recent yen weakness is expected to continue.

Technical FX analysts at CIBC World Markets suggest investors should use any strength in both the euro and the Australian dollar to sell short against the US dollar.

Russia is attempting to hold its currency within a trading band and Danske Bank expects this will force it to sell euros to maintain its reserve balance.

The technical analysts at CIBC World Markets have been busy examining foreign exchange movements, the result being a number of potential trades based on recent price activity.