FLEU - Short Covering Squeezes The Yen Higher
2024-07-23 07:05:00 ET
Summary
- The US dollar is firmer against all the G10 currencies but the Japanese yen.
- The euro eased to a seven-day low, a little below $1.0865, while sterling is holding above $1.29.
- Mainland Chinese shares tumbled, with the CSI 300 falling more than 2% to unwind most of this year's gain.
Overview
The US dollar ([[DXY]], [[USDOLLAR]]) is firmer against all the G10 currencies but the Japanese yen. Local reports and the price action are consistent with short covering of the previously sold yen positions, ostensibly ahead of next week's BOJ and FOMC meetings. Still, the greenback is holding above last week's low, slightly below JPY155.40. The Antipodeans and Scandis have extended their recent sharp losses. The euro eased to a seven-day low, a little below $1.0865, while sterling is holding above $1.29. Most emerging market currencies are lower. Of note, the offshore yuan has edged higher while the onshore yuan remains soft....
Short Covering Squeezes The Yen Higher