6 Forex Management.com

Forex Market Update:

US equities failed to follow through on the positive gains in Europe and Asia following the Chinese decision to allow for a more flexible exchange rate
commodity currencies once again have the highest betas to the S&P 500 on a 30-day moving basis
commodity currencies regained the highest betas in the G10 due to the pull-back in risk-seeking, longer-term moving correlations (90 day) also converged.
we think AUD and the rest of the commodity currencies should strengthen as a result of the Chinese exchange rate decision in the near-term
CAD to have relative strength given an improving outlook,
officials nevertheless remain concerned about currency volatility and are monitoring emerging market CAD purchases.
With the China currency topic essentially off the table, regulatory reform should again be at the forefront of discussions ahead of the G20 as the euro continues to be troubled by investor concerns on Eurozone financial institutions and fiscal policies.