Feeding off a bearish dollar - ANZ

Analysts at ANZ noted that established trends in FX markets continued to unfold overnight.

Key Quotes:

"The euro remained in strong demand with EUR/USD and the euro crosses continuing to push higher, whilst the USD remains a sell on rallies. "

"The reasons for this trade have been well documented (i.e. low US inflation and US political uncertainty; better outlook in Europe and less political uncertainty) and the FX market is continuing to feed off it."

"The NZD is still in recovery mode following the downward surprise in headline employment growth (though in our view the details of the data were actually strong)."

"In this light, equity bullishness underscores that there is a certain “devil may care” attitude permeating US equities, and risk assets more generally. It adds up to a challenging backdrop for the Federal Reserve in its aim to steadily yet carefully mop up the QE liquidity that has been sloshing around global markets for years."