USD resumed its weaker trend - ANZ

Analysts at ANZ explained that the USD resumed its weaker trend vs EUR and GBP despite the more upbeat assessment of a return to sustainable inflation by the FOMC and still-strong US data. 

Key Quotes:

"Given that QE is set until September, EUR continues to reflect the strength of the recovery and expectations of a future ECB policy shift. "

"The market is continuing to put about a 60% probability on a 10bps deposit rate increase by year-end. The yield on the 10-year bund rose to 0.72% and EUR/USD remains highly correlated with the German yield curve. 

Meanwhile, the US 10-year yield rose 5bps to 2.75% and looks vulnerable to further selling. Equities in Europe were heavy with the DAX off 1.4%, the CAC 40 down 0.5% and FTSE 100 down 0.6%."

"The S&P 500 and NASDAQ are currently up 0.3% and 0.4% respectively as Apple results are awaited. At the time of writing, WTI was up 1.1% at USD65.4/bbl; gold is currently off 0.2% at USD1342.7/oz."