JEMTF - Rate Adjustment Underpins Greenback

2024-04-03 06:50:00 ET

Summary

• The adjustment to US interest rates continues and this helps underpin the US dollar.
• The dollar is firmer against all the G10 currencies today, while emerging market currencies are mixed.
• A powerful earthquake off the coast of Taiwan shuttered factories, but the Taiwan dollar managed to eke out minor gains.
• Gold rose to a new record high near $2288.50 before profit-taking saw it fall slightly below $2268 where it found fresh bids.
• May WTI extended its recent gains to trade near $85.65 today.

Overview

The adjustment to US interest rates continues and this helps underpin the US dollar. The 10-year ( US10Y ) yield rose to 4.40% yesterday, the highest it has been since last November. It is trading 4.34%-4.38% today. The two-year ( US2Y ) yield is firm though holding below the Q1 high set last month near 4.75%. This week, for the first time since last October, the Fed funds futures do not have at least a quarter point cut discounted for July. As recently as February 12, the market had two cuts discounted....

For further details see: