USDU - Greenback Surges After BOJ Hikes And Ends YCC And RBA Delivers A Dovish Hold
2024-03-19 09:05:00 ET
Summary
- The US dollar is surging today against most of the G10 currencies, while the yen and Australian dollar are the weakest of the lot.
- EM currencies are lower. The offshore yuan is weaker for the sixth consecutive session.
- Japanese, Australian, and New Zealand equities bucked the regional trend to advance today.
- STOXX 600 in Europe isslightly lower, and if sustained, it would be the fourth consecutive losingsession.
- US index futures are nursing small losses.
Overview
The US dollar ( DXY , USDOLLAR ) is surging today against most of the G10 currencies, and although the intraday momentum is stretched ahead of the start of the North American session, there may be little incentive to resist before the end of the FOMC meeting tomorrow. The Bank of Japan's rate hike and the end of Yield Curve Control were not seen as the start of the tightening cycle. The two-year JGB yield slipped to a two-week low and settled below its 20-day moving average for the first time since mid-January. The Reserve Bank of Australia delivered a dovish hold by dropping the reference to future tightening. The yen (~-0.95%) and Australian dollar (~-0.85%) are the weakest of the G10 currencies. Emerging market currencies are lower, led by the Philippine peso (~-0.65%). The offshore yuan is weaker for the sixth consecutive session....
Greenback Surges After BOJ Hikes And Ends YCC And RBA Delivers A Dovish Hold