NEW YORK ( BBH FX Strategy) -- The dollar is broadly weaker against major currencies, with moves still confined to recent ranges with the exception of sterling. The euro broke above the 1.3350, rising for three consecutive sessions and returning to the level at the start of the month.
Markets seem to be still reacting to Fed Chairman Ben Bernanke's comments that were, in our view, misinterpreted as dovish. Cable broke above its recent high of 1.5950, returning to levels not seen since November last year.
M&A talk is a factor, with Abu Dhabi reportedly looking to buy a third of the British government's 82% stake in the Royal Bank of Scotland, BP looking to sell North Sea assets worth approximately 2 billion pounds and Lloyds selling a 500-million-pound loan portfolio to U.S. firm Bain Capital.Follow TheStreet on Twitter and become a fan on Facebook. Global stocks are higher, with Asian stocks tracking U.S. equities higher following the comment from Bernanke. The MSCI Asia Pacific Index is up 2% led by gains in Japan and Hong Kong. The Nikkei has filled gap left from last year's earthquake. European shares are higher for a third day, with EuroStoxx 600 up 0.2%, bank shares up 1%. U.S. yields are flat and yields in Italy and Spain are modestly higher, with the 10-year up 5 basis points and 2 basis points. Brazil's Vale sees significant iron ore demand from China, unlike Australian companies last week that were more cautious.