The post-financial crisis and massive central bank stimulus that followed in developed nations has led to some of the lowest bond yields in history. In a move to find higher returns, cash has moved abroad into economies that offer higher yielding assets. Countries such as New Zealand have benefitted during these times, but with the Fed's move to scale back asset purchases in combination with slower growth in China, the four year trend may be showing signs of fundamental weakness.
The British Pound closed out the week dropping for a sixth day versus the Euro, its worse run since August, and had a second straight week of declines against the Greenback. This coming week, the BOE is unlikely to back away from its ultra-accommodative policy stance.