USD/JPY Jumpy as Japan's Core CPI Eases

The Japanese yen showed some promise earlier, gaining as much as 0.48% against the US dollar as it rose to 153.59. However, it has pared those gains and is trading in Europe at 154.58, down 0.04%.

Euro Edges Higher, ECB Eyes June Cut

The euro fell as much as 0.30% earlier but has recovered and edged higher. In the North American session, EUR/USD is trading at 1.0666, up 0.21%. The euro remains under pressure from the strong US dollar. Last week, EUR/USD fell 1.8% and dropped as low as 1.0601 this week, its lowest level since early November.

Sunset Market Commentary

The impact of this morning’s “limited” Israeli retaliatory attacks against Iran gradually waned throughout today’s trading session. Initial flows all changed course. Some examples: US yields are currently up to 3 bps lower compared to over 10 bps during (illiquid) Asian trading hours.

Week Ahead – US GDP and BoJ Decision on Top of Next Week's Agenda

The dollar staged a strong recovery the last couple of weeks, with the bulls being encouraged to initiate long positions as soon as the US CPI data revealed that inflation in the world’s largest economy reaccelerated in March.

Supercharged US Dollar Turns to GDP Growth Data

It’s been a phenomenal year for the US dollar so far. The greenback has gained more than 4% against a basket of currencies, turbocharged by a series of solid economic readings that have forced investors to dial back bets of imminent Fed rate cuts. 

Eurozone PMIs Eyed as Euro's Focus Turns to Rate Cuts Beyond June

The euro area economy stagnated in the middle of 2023 but narrowly managed to dodge a technical recession, defined as two consecutive quarters of negative growth. The most recent data have been somewhat more upbeat, and the Eurozone may be turning a corner.

U.S. Economy's Outperformance Carried on into the Start of the Year

The first estimate of U.S. Q1 gross domestic product next Thursday is expected to show another robust increase—extending a long stretch of outperformance in the U.S. economy versus advanced economy peers.

Weekly Economic & Financial Commentary: Another Week, Another Strong Showing from the U.S. Consumer

Robust retail sales data were the main story on the U.S. economic data front this week. Elsewhere, data for industrial production and jobless claims offered additional evidence that the U.S. economy remains on solid footing.

US House Passes Military Aid Bill to Ukraine, Israel and Taiwan

In the US, the house of representatives passed a 95 billion USD legislative package providing security assistance to Ukraine, Israel and Taiwan on Saturday. The Senate, controlled by the Democrats, is expected to vote on the bill Tuesday. They are expected to pass it, since they passed a similar measure over two months ago, which the house speaker Mike Johnson denied letting come to a vote in the House, which he finally did on Saturday.

Relief Before Earnings

The week starts with a relief rally in equities following a calm weekend on the geopolitical scene. The US 2-year yield pushes above 5% ahead of US GDP and PCE updates. Four of Magnificent 7 are due to report earnings this week.