ACTV - Calmer Markets Ahead Of The Weekend
2024-05-24 07:35:00 ET
Summary
- The dollar is paring yesterday's advance that was spurred by the rise in US rates following the preliminary PMI.
- Asia Pacific and European equities have sold off in the wake of yesterday's slide in the US.
- The Canadian dollar was the weakest of the G10 currencies yesterday, losing nearly 0.3% and falling to its lowest level since May 8.
Overview
The dollar ([[DXY]], [[USDOLLAR]]) is paring yesterday's advance that was spurred by the rise in US rates following the preliminary PMI, which reached its best level in two years. The survey also picked up higher prices. The dollar is in narrow trading ranges but softer against nearly all the G10 currencies today. The Swiss franc and Japanese yen are laggards. Despite a large disappointing miss on UK retail sales, sterling has steadied after falling yesterday for the first time in five sessions. The Dollar Index approached but did not take out the 20-day moving average (105.10), which it has held below since May 2. Emerging market currencies are mostly firmer, but Asian currencies are underperforming central Europe, with the notable exception of the Indian rupee, which is up around 0.25% today. Lastly, the G7 communique is expected to be released tomorrow. There may be a reiteration of the stance on intervention: markets are best to determine exchange rates and intervention should be rare and aimed at addressing disorderly or volatile markets. The focus is likely on Ukraine funding and Russia's reserves, but a formal decision is not expected until next month's leaders' meeting....
Calmer Markets Ahead Of The Weekend