The market is paralyzed
The pound was the top performer this week while the euro lagged. However, the overall move was less than 1% and in general, the currency weekly changes this week were minor.
There were some signs of breaks in AUD/USD and elsewhere yesterday but the lack of follow through today suggests the political malaise, Fed uncertainty and overall lack of volatility remains the main theme.
Even stretching back over two weeks, the only lasting themes have been minor yen strength and euro weakness. The tentative idea there is that the euro is being sold on political risk and the yen bought as a safe haven. That's somewhat of a compelling idea, but hardly an exciting one.
