AFMC - Dollar Pulled Back In Europe - New Buying Opportunity?
2024-05-30 07:20:00 ET
Summary
- The dollar initially extended yesterday's North American recovery but unwound most of the gains in the European morning.
- The yen's recovery arguably helped the Chinese yuan rise for the first time since May 15.
- After falling more than 1% yesterday, the biggest drop since mid-April, Europe's Stoxx 600 has come back bid today, and it is up about 0.35%.
Overview
The dollar ([[DXY]], [[USDOLLAR]]) initially extended yesterday's North American recovery but unwound most of the gains in the European morning. As North American dealers return, the greenback is lower against most of the G10 currencies. After approaching levels believed to have been where the BOJ last intervened, profit taking pushed the dollar back to a marginal new low for the week (~JPY156.55). The yen's recovery arguably helped the Chinese yuan rise for the first time since May 15. The euro held important support near $1.0785 and sterling did the same near $1.2675. Still, the currencies' recovery in Europe stretched intraday momentum indicators. This suggests the risk favors selling into the upticks rather than piling on. Jitters over yesterday's South African election have weighed on the rand (~-1.2% today), and the thin Asia Pacific liquidity saw the Mexican peso extend yesterday's slide. Mexico goes to the polls Sunday, but market positioning more than election developments per se seems to be behind the peso's rout....
Dollar Pulled Back In Europe - New Buying Opportunity?