Buy USD – and just keep buying - ANZ

Analysts at ANZ said, "Buy USD – and just keep buying – seems to be the mantra."

Key Quotes:

"The EUR hit a 13 year low, dipping below 1.04, while the JPY has surged ahead to 118. CNH forwards are still signalling stress in the market with points climbing higher. Yields on US Treasuries consolidated the gains of the previous day. The market has priced an approximately 35% chance of another Fed hike by March 2017. Curves elsewhere are bear steepening.

In Germany, France, Italy, and Spain the moves are less extreme, with front ends largely unchanged and long ends up 2-6bps. Equities rebounded, led by European bourses up 0.7-2%. In the US, DJIA and S&P 500 were up 0.4%, led by a 1.7% move in financials. The VIX is down 3.3% to 12.8. Oil is falling victim to the stronger US dollar. Gold shed another 1.9%."