ADIV - Yen Dumps Before It Jumps
2024-04-29 07:35:00 ET
Summary
- The dollar soared to almost JPY160.20 before falling sharply to JPY154.55 and then rebounding to almost JPY156.00.
- The euro reached almost $1.0755 before turning lower ahead of the weekend, the highest level in slightly more than two weeks.
- Emerging market currencies are more mixed. Turkey, South Africa, Hungary, and Mexico are leading, while Russia, Czech, and Indonesia are laggards.
Overview
The FOMC meeting, the US employment report, and the eurozone CPI were to be the highlights of the week, but the Japanese yen stole the march to start the week. The dollar soared to almost JPY160.20 before falling sharply to JPY154.55 and then rebounding to almost JPY156.00. Intervention has not been confirmed and BOJ data will not cover it until next month. On balance, it appears that most think it was algo-trading in thin markets given the Japanese holiday. The dollar weakened against the other major currencies, and although it is still lower on the day, the downside momentum may have stalled. Emerging market currencies are more mixed. Turkey, South Africa, Hungary, and Mexico are leading, while Russia, Czech, and Indonesia are laggards....
Yen Dumps Before It Jumps