Sterling still the top performer this week, despite today’s drop

FX performance this week

The US dollar is holding near the highs of the day with US equities now back to flat. The market did not like the strong Markit report because it could bring tapering closer. I don’t share that belief because the Fed wants to look through the reopening boom and because a book is good news for corporate profits and everything else.

In any case, the dollar rally today takes the shine off what had previously been a decent week.

Here is weekly FX performance versus the dollar:

That makes GBP/NZD the best performer this week. It’s not a chart I look at often but it’s running into the March highs. At first blush, the whole chart looks like a big head-and-shoulders pattern but there’s is also a bit of an inverted head-and-shoulders more recently.

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