YCL - Greenback Consolidates Two-Day Surge

2024-02-06 07:15:00 ET

Summary

• The US dollar is consolidating its two-day surge since the jobs data at the end of last week.
• The Reserve Bank of Australia did not rule out additional rate hikes, and the Australian dollar is the best performer in the G10 today with a small gain.
• The euro languished near yesterday's low. Sterling broke out of its $1.26-1.28 range and is also moving sideways in a roughly $1.2530-65 range.
• Signs that Chinese officials are stepping up their support for the equities saw the CSI 300 jump around 3.5%, and the Hang Seng surged by a little more than 4%.
• The STOXX 600 is flat to firmer, and US index futures are narrowly mixed.

Overview

The US dollar ( DXY , USDOLLAR ) is consolidating its two-day surge since the jobs data at the end of last week. The Reserve Bank of Australia did not rule out additional rate hikes, and although the derivatives markets do not think it is likely, the Australian dollar is the best performer in the G10 today with a small gain. An unexpectedly strong German factory orders report failed to help the euro much and it languished near yesterday's low. Sterling finally broke out of its $1.26-1.28 range and is also moving sideways in a roughly $1.2530-65 range....

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