Rate cuts on the flip side

Yesterday I mentioned that i expected the curriencies that recieved rate cuts would respond to those cuts by rallying.  A counter intuitive idea of course.  We have seen that play out as expected now.  However, there is an overwhelming amount of preasure still on these currencies.  Triche’s comments clearly left the door open to more cuts to come so that idea will act as a wall in the way of rallies in the near term.  NFP remains a wild card tomorrow so continued caution is advised.  We do expect the tone that ends this week will carry over and set the new tone for next week.