ADIV - Yen Unwinds Yesterday's Gains While The Mexican Peso And Indian Rupee Stabilize

2024-06-05 07:15:00 ET

Summary

• The yen, which rallied, yesterday, has given back most of its gains and the wage data gave the market second thoughts about next week's BOJ meeting.
• The Mexican peso, which has been sold aggressively in the face of the strong election showing of the Morena party and allies, is the strongest currency today, though the greenback is holding above yesterday's lows.
• The Indian rupee is the second strongest and its stock market is recouping more than half of yesterday's steep losses.

Overview

The foreign exchange market is calmer today than Monday and Tuesday, and the dollar ([[DXY]], [[USDOLLAR]]) is mixed. The yen, which rallied, yesterday, has given back most of its gains and the wage data gave the market second thoughts about next week's BOJ meeting. The Mexican peso, which has been sold aggressively in the face of the strong election showing of the Morena party and allies, is the strongest currency today, though the greenback is holding above yesterday's lows. The Indian rupee is the second strongest and its stock market is recouping more than half of yesterday's steep losses. The highlight of today's North American session is the Bank of Canada meeting. The swaps market has about an 80% chance of a cut discounted. A cut today would make the Bank of Canada the third G10 central bank to cut rates (behind Switzerland and Sweden) and the first in the G7. If it does not cut rates, a move next month would likely be signaled....

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