YCL - Dollar's Recent Gains Pared But Firm Undertone Remains Intact
2024-03-26 08:35:00 ET
Summary
- The dollar consolidated yesterday and is continuing to do so today at slightly lower levels.
- The PBOC lowered the dollar's fix slightly, and officials are struggling to reestablish order. Against the offshore yuan, the dollar remains outside of its 2% onshore band.
- Asia-Pacific equities rallied, led by the Hang Seng and mainland shares that trade in Hong Kong.
- Europe's STOXX 600 is treading water after eking out a minor gain yesterday.
- US index futures are enjoying modest gains.
Overview
After surging at the last week, the dollar ( DXY , USDOLLAR ) consolidated yesterday and is continuing to do so today at slightly lower levels. The Swiss franc is the only G10 currency unable to gain traction against the greenback today. Still, the dollar's pullback has barely met the minimum retracement targets of the jump last Thursday and Friday. The PBOC lowered the dollar's fix slightly, but the proverbial toothpaste is out of the tube and officials are struggling to reestablish order. Against the offshore yuan, the dollar remains outside of its 2% onshore band. The Hungarian forint is the strongest of the emerging market currencies ahead of the central bank's rate decision, where a 75 bp cut is expected after the base rate was slashed by 100 bp last month....
Dollar's Recent Gains Pared But Firm Undertone Remains Intact