AFMC - Becalmed FX Market Doesn't Conceal The Greenback's Strength

2024-02-09 07:50:00 ET

Summary

• The foreign exchange market is becalmed today, with most of the major pairs trading in narrow ranges.
• It is not just that the dollar is strong, but the Japanese yen is also weak.
• With the mainland markets closed now until February 19, the lurch lower by the yen might be a limited drag on the offshore yuan.
• The BOJ's deputy governor comments yesterday and the rise in US rates has sparked a new leg up in the dollar and the move does not seem complete.
• Economists will digest the implications of today's CPI revisions, but we suspect the impact on the market and policymakers will be minimal.

Overview

The foreign exchange market is becalmed today, with most of the major pairs trading in narrow ranges. The economic calendar is light and the North American session features benchmark revisions in US CPI and Canada's January employment figures. The US quarterly refunding supply has been absorbed without much fanfare....

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