AFMC - Yen Retreats While Stronger EMU GDP Underscores Nascent Recovery And Lifts The Euro

2024-04-30 08:10:00 ET

Summary

• Stronger-than-expected eurozone GDP strengthened the sense that a nascent recovery may be taking hold and has given the euro a bid in the European morning.
• Japanese stocks rallied strong coming back from the long weekend.
• The euro remained within the pre-weekend range yesterday (~$1.0675-$1.0755) and continues to do so today.
• The US dollar recorded the year's high against the Canadian dollar in mid-April near CAD1.3845.

Overview

Stronger-than-expected eurozone GDP strengthened the sense that a nascent recovery may be taking hold and has given the euro a bid in the European morning. The dollar ( DXY , USDOLLAR ), though, is enjoying a firmer tone against the other G10 currencies today. Australia's unexpected weakness in retail sales has weighed on the Antipodean currencies. The Aussie and Kiwi are off slightly more than 0.5% today. Japanese data were mixed (a recovery in industrial production, but weakness in retail sales) and the market has taken the dollar to almost JPY157. It had settled near JPY156.35 yesterday. The market is still treading gingerly after yesterday's drama and possible intervention. Emerging market currencies are mixed, with Turkey and Hungary leading the advancers and the South Korean won and South African rand off 0.25%-0.35%, to lead the decliners....

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