JEMTF - U.S. CPI New Security Initiatives With Tokyo And Manila Bank Of Canada Meeting

2024-04-10 07:00:00 ET

Summary

• Given the backup of US rates and the stronger-than-expected jobs growth, the greenback's performance has been unimpressive.
• The Hang Seng (1.85%) and the mainland companies that trade there (2.06%) led the region.
• Benchmark 10-year yields are mostly slightly softer in Europe; the 10-year US Treasury yield is hovering near 4.35%.
• Gold is consolidating in about $2345-$2360 range. It peaked yesterday slightly above $2365.

Overview

The dollar has been confined to narrow ranges ahead of the US CPI report. Given the backup of US rates and the stronger-than-expected jobs growth, the greenback's performance has been unimpressive. The Reserve Bank of New Zealand signaled that it was in no hurry to cut rates, and it helped underpin the New Zealand dollar. Up about 0.2% today, it is leading the G10 currencies higher. Strong earnings from TSMC may have helped underpin the Taiwanese dollar (~0.3%), which is trailing the Mexican peso (~0.35%) to lead the emerging market currencies....

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