In a quiet foreign exchange market, the dollar demonstrates a stronger position against the majority of G10 currencies, reflecting a generally consolidative sentiment. The US markets are not operating today in observance of President’s Day, and Chinese markets will remain closed for the entire week in celebration of the Lunar New Year. Disappointing Japanese data, Read More
The US dollar remains strong against the G10 currencies as we approach the release of the US January CPI. The week commenced with reports indicating that Chinese officials were advocating for a reduction in exposure to US Treasuries. Supported by better-than-anticipated employment figures for January, the dollar reduced its declines. In a surprising turn of Read More
The US dollar is experiencing a decline against all the G10 currencies. The ongoing short squeeze is driving the yen higher, despite Japan being on holiday today. The yen and Japanese bonds have shown resilience, rallying following the LDP’s decisive electoral win. The interplay of a stronger yen alongside declining yields may resemble a typical Read More
Following the significant declines observed yesterday, the US dollar is predominantly stabilizing with a stronger inclination against the G10 currencies. The yen stands as an exception. The unforeseen post-election increases have persisted into the local session and the European morning. The extended rally at the long end of the Japanese yield curve continues to defy Read More
Three significant developments have emerged. Initially, Japan’s Prime Minister Takaichi guided the LDP to a significant victory, achieving a 2/3 “super majority.” This outcome is perceived as a strong mandate, presenting a chance to amend the constitution. Despite the sale of JGBs and the purchase of Japanese equities, following some initial volatility, the yen has Read More
The US dollar is experiencing a reduction in this week’s gains against the majority of G10 currencies today. The Australian dollar has rebounded from a two-week low established earlier today and stands out as the sole G10 currency to appreciate against the greenback this week. The Reserve Bank of Australia increased interest rates earlier this Read More
The US Dollar experienced significant selling pressure at the beginning of yesterday’s trading session. The apprehension surrounding joint intervention follows the pre-weekend Fed assessment of rates, seemingly conducted for the benefit of the US Treasury, and highlighted by remarks from Japanese officials, including Prime Minister Takaichi. In the meantime, a further unfortunate death linked to Read More
The two sources of strain on the global capital markets have diminished. President Trump has retreated from military threats regarding Greenland and has decided against proceeding with the tariff threat on European countries set for February 1. Following a significant sell-off on Tuesday, reminiscent of the events in the UK during Prime Minister Truss’s tenure, Read More
The various elements at play, coupled with Japan’s finance minister’s appeal for market stability, appeared to have a positive effect. Japan’s 30- and 40-year yields decreased by approximately 15 basis points today following yesterday’s increase. The capital markets exhibit a delicate tranquility today, with the dollar primarily stabilizing against the G10 currencies. In the meantime, Read More
The US dollar is experiencing a decline against all G10 currencies, yet the overall consolidation observed this week persists. Japanese officials have maintained their verbal intervention, and with the US holiday approaching on Monday, the likelihood of significant intervention appears to be increasing, prompting some yen shorts to cover their positions. Reports indicate that Machado’s Read More
