The U.S. dollar dipped slightly overnight but remains near familiar levels seen most of this week.
Overview
The Bloomberg Dollar Spot Index is down 0.2%.U.S. stocks are set to close in the positive for the second consecutive week despite ongoing worries over Fed tightening and the Russia/Ukraine war. Some equity analysts are warning of a possible recession coming down the line as key parts of the yield curve have flattened or inverted. However, in the near-term risk appetite appears to be firm and U.S. indexes are set to add to their weekly gains at the open. There are three Fed speakers on today’s docket including a speech by Richmond Fed President Thomas Barkin on containing inflation at 11:30 a.m. The University of Michigan Sentiment and pending home sales will wrap up this week’s fundamental data at 10 a.m.
What to Watch Today…
- University of Michigan Sentiment at 10 a.m.
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JPY
The Japanese yen rallied nearly a full percent overnight, before giving back about half of its gains. The Bank of Japan decided not to intervene in the government bond markets despite yields touching levels that have previously sparked intervention. The move marked the yen’s first gain in five days. Despite the overnight move, the Japanese yen is still down nearly 3.0% this week.
EUR
The Euro rose a touch overnight but remains comfortably in the range we have seen all week. Data showed that German business confidence fell to its lowest levels since the beginning of the pandemic. IFO expectations dropped to 85.1 in March, missing estimates of 92.0 Later today, President Joe Biden and European Commission President Ursula von der Leyen will announce a plan to boost supplies of liquefied natural gas to Europe by the end of the year in an effort to diminish the continent’s reliance on Russian energy.
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