ADIV - Greenback And Yen Extend Gains

2024-07-24 07:05:00 ET

Summary

• The dollar's gains have been extended today, but in the risk-off mode, and unwinding of carry positions, the Japanese yen and Swiss franc are firmer.
• The US 10-year yield is a little lower, around 4.23%, but it remains within the range set on Monday.
• A disappointing Eurozone PMI and the risk-off have seen peripheral premiums widen over core rates in Europe.

Overview

The dollar's ([[DXY]], [[USDOLLAR]]) gains have been extended today, but in the risk-off mode, and unwinding of carry positions, the Japanese yen and Swiss franc are firmer. The dollar has stabilized in late European morning turnover. The Bank of Canada is widely expected to cut rates today, and the greenback is pushing against CAD1.38, which it has not traded above for three months. The US dollar gains, which we anticipated, are coming despite interest rates remaining soft. The US 10-year yield ( US10Y ) is a little lower, around 4.23%, but it remains within the range set on Monday. A disappointing Eurozone PMI and the risk-off have seen peripheral premiums widen over core rates in Europe. Leaving aside the Russian ruble and the South African rand, most other emerging market currencies, mostly from central Europe and the Mexican peso, are leading the decliners....

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