DXY, the dollar index reached a one year high this morning. Touching a level of 101.148, before falling off a little, but still holding a high level, as markets continuing to open across Europe.
Support from elevated treasury yields in the US, which has been repriced after expectations of US interest rates levels. Markets are currently pricing in a rate hike in September by 51%.
JPY, Japanese Yen are once again struggling to other currency pairs and is currently facing pressure. An intervention is from the Japanese Government is expected. Its government has already spent around $72B between April and end of May to steady their domestic currency. Japan's Finance Minister Katayama held a meeting with Secretary of Treasury Scott Bessent late Monday, discussing the latest JPY weakness.
EUR did absorb smaller losses since yesterday afternoon to both GBP and USD, after Christine Lagarde down played inflation pressure on Europe moving forward, now that they're seeing oil prices falling. Markets did take these comments as a little dovish of future guidance. Whether ECB will continue to act with monetary actions or wait and see its effects of their first rate hike, we will have to wait and see.
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