KSTR - Yen Slips Yuan Jumps Dollar Is Mostly Softer
2024-05-06 08:00:00 ET
Summary
- The dollar is mostly a little softer today in thin market conditions, with Tokyo, Seoul, and London closed for holidays.
- Equities are off to a constructive start this week after the strong US rally before the weekend.
- Most markets in the region advanced. Europe's Stoxx 600 is up about a third of a percent, recouping most of last week's loss.
Overview
The dollar ([[DXY]], [[USDOLLAR]]) is mostly a little softer today in thin market conditions, with Tokyo, Seoul, and London closed for holidays. The Japanese yen is the weakest G10 currency, losing about 0.5% and slipping through last Friday's lows. At first, after Fed Chair Powell did not endorse rate hike speculation, the market thought he was dovish. But after the softer-than-expected jobs data and weakness in the ISM services, the market shifted from doubting one cut to pricing in two. China's markets re-opened for the first time since last Tuesday. The Chinese yuan played catch-up and has appreciated by 0.45% today, to lead the emerging market currencies. The yuan reached its best level since late March amid speculation that Beijing may be considering a large devaluation (of which we are skeptical)....
Yen Slips, Yuan Jumps, Dollar Is Mostly Softer