2024-04-28 04:30:00 ET
Summary
- The backing up of US rates did not lift the dollar broadly as it appeared to have done previously.
- The Bank of Japan had an opportunity to have protested the yen's weakness more adamantly but did not do so.
- The FOMC meeting concludes a couple of days for the data: a hawkish hold is expected.
- The UK holds local and mayoral elections and the real question seems to be how badly the Tories will perform.
The backing up of US rates did not lift the dollar broadly as it appeared to have done previously. The dollar-bloc currencies, led by the Australian dollar, and sterling advanced last week, while the Swiss franc and Japanese yen were unable to find traction. The Bank of Japan had an opportunity to have protested the yen's weakness more adamantly but did not do so.
Recognizing the role of interest rate differentials as an important driver, the Ministry of Finance threatens action but seems reluctant to intervene. Still, the market continues to probe for the official pain threshold. This year, the greenback has generally weakened in the run-up to the employment data and recovered afterward. It has trended lower over the last couple of weeks and that correction may be over....
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Week Ahead: FOMC, U.S. Jobs, EMU Inflation, JPY Pressure