YCL - China PMI Is Better Than Expected But The Greenback Still Rises Above CNY7.23

2024-04-01 08:45:00 ET

Summary

• The dollar is trading quietly against the G10 currencies as European markets remain on holiday.
• The dollar bloc currencies are leading with minor gains, perhaps helped on the margins by better-than-expected Chinese PMI, but the Scandis are the laggards.
• The Turkish lira is trading with a heavier bias today, as are most EM currencies, and the dollar breached CNY7.23 for the first time since last November.
• Japanese shares sold off earlier today. Chinese shares rallied and the CSI 300 rose nearly 1.65%, its third consecutive advance and the largest rally in a little over a month.
• US index futures are 0.25-0.50% better.

Overview

The dollar ( DXY , USDOLLAR ) is trading quietly against the G10 currencies as European markets remain on holiday. Narrow ranges have prevailed. The dollar bloc currencies are leading with minor gains, perhaps helped on the margins by better-than-expected Chinese PMI, but the Scandis, which also typically do well amid a better global growth profile, are the laggards. This may speak to the light liquidity conditions. Japan may have missed a tactical opportunity to intervene to knock the dollar back ahead of what may be a solid US jobs report at the end of the week. Erdogan's AK Party lost the weekend elections. The opposition CHP won 35 mayorships against 24 for the AKP. The early signals are that Erdogan will stick with the turn toward economic orthodoxy, and in the current context, that means tight monetary policy. The Turkish lira is trading with a heavier bias today, as are most emerging market currencies, and the dollar breached CNY7.23 for the first time since last November....

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