ACTV - Waller Pushes On Open Door: Push For Patience Lifts The Dollar Complicating Japanese Efforts

2024-03-28 07:44:00 ET

Summary

• Comments by Fed Governor Waller, urging patience on rates and wanting more evidence that price pressures are moderating, has helped the greenback extend its recent gains.
• Japanese officials are clearly signaling its willingness to intervene in the foreign exchange market to strengthen the yen.
• A combination of hawkish comments by the Fed's Waller and poor German data has weighed on the euro, taking the single currency to new lows for the month to about $1.0775.
• The US dollar remained in the upper end of its recent range against the Canadian dollar.

Overview

Comments by Fed Governor Waller, urging patience on rates and wanting more evidence that price pressures are moderating, has helped the greenback extend its recent gains. The yen is the notable exception as the fear of intervention has restrained the dollar bulls. Poor German data, including a sharp 1.9% drop in February retail sales, the fourth consecutive monthly decline, underscored the euro's negative divergence, and the single currency was sold to new lows for the month below $1.0780. The Antipodeans and Scandis are leading the G10 currencies lower with 0.6%-0.8% losses. Emerging market currencies are mostly lower. The South Korean won and Taiwanese dollar are exceptions with miniscule gains....

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