Gold registered gains of 1.2 per cent gain for the quarter, helped mainly by a dovish
US Federal Reserve and concerns about the global economy.
The hawks at ECB are sounding more dovish
. Bundesbank President Weidmann said that there was 'much to suggest' that weakness in Germany's growth is persisting in 2019 and Bank of Japan (BoJ) Governor Haruhiko Kuroda said last week that the central bank might ease policy further if a strong yen hurts the economy.'
Tillerson has been one of the representative dovish
figures in the administration, and has often clashed with Trump over North Korea issues.
ING Bank economist Joey Cuyegkeng said the Bangko Sentral ng Pilipinas (BSP) continued to show its "greater tolerance" for a weaker peso and the recent move - though expected - to cut its reserve requirement ratio (RRR) for banks by one percentage point to 19 percent is further evidence of the BSP's dovish
However, the stimulus from easier monetary policy by a dovish
Fed may not last.
"Wrapped in dovish
language, theFederal Reserve has just embarked on what will be the loosest tightening in its history," said Mohamed El-Erian, chief economic advisor at Allianz in Newport Beach, California.
While the fundamentals continue to perform at a robust level, dovish
BoE inflation views will prevent any UK interest rate optimism from emerging again and also prevent the Sterling from experiencing a similar rally to what we encountered this time last year.
It added : "That being said, the trade may take time develop as the risks of an aggressively dovish
statement are low given that 1) the RBA remains in a structural easing cycle (which delivers modest amounts of easing at any given time); 2) the RBA will have an eye on the potentially positive growth impact of lower petrol prices, lower AUD and lower rates; and 3) there has not been enough of a cyclical deterioration to warrant an aggressively an dovish
US Fed minutes knocked the US Dollar, causing gold prices to bounce and equities to rise.
US stocks, bonds slip as Fed stops short of more dovish
We remain fairly bearish on TRY on all forecast horizons as short term, the TRY will be influenced by a continued dovish
central bank and fairly weak economy while the large current account deficit will push the USD/TRY up on a 12M horizon.
"It is predictable that we are going to see a dovish
stance (from the Fed,) but if it turns out more dovish
than expected, the dollar could be sold further," Saito said.