In a notable shift, the Japanese yen stands out as the sole G10 currency appreciating against the dollar during the European morning session. Yesterday, it was the sole G10 currency that experienced a decline against the greenback. The prevailing sentiment in the foreign exchange market remains one of consolidation. The significant outlier is the Chinese Read More
The dollar experienced selling pressure during President Trump’s State of the Union Address. Nevertheless, in relation to the majority of G10 currencies, it continues to operate within established ranges, a situation that could be bolstered by an active option expiration calendar, as we will elaborate on below. Two notable exceptions exist. The Japanese yen has Read More
The US dollar exhibits a modest strengthening against the majority of G10 currencies, yet remains largely within its recent trading ranges. The yen stands out as a significant exception. Beijing has declared the imposition of sanctions on additional Japanese firms associated with military connections and has placed others under surveillance, a move that will likely Read More
The US dollar is exhibiting a generally stronger performance, albeit subtly, as we approach a potentially volatile North American trading session. The focus extends beyond US data, which is abundant—featuring the PCE deflator, an initial glimpse at Q4 GDP, the preliminary February PMI, and the final February reading on consumer confidence from the University of Read More
The US dollar exhibits a varied performance against the G10 currencies. The positive response to Japan’s five-year bond auction contributed to the ongoing rally in JGBs. Even with the lower yields, the yen’s approximately 0.25% increase positions it as the leading performer among G10 currencies today. In anticipation of a hawkish hold by the Reserve Read More
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
