Dollar Drops With US Data in Focus, Yen Outperforms
The dollar traded mixed versus its Group-of-10 peers and lower on a trade-weighted basis as a yen rally set the tone.
The Bloomberg Dollar Spot Index slips 0.2% after falling 0.4% last week. US 10-year Treasury yields down 2bps to 4.16%.
Investors will be parsing non-farm payrolls, retail sales and CPI data this week for more cues on the Federal Reserve’s policy path into next year.
USD/JPY drops 0.6% to 154.94; weak stops filled on break of 155.50, a Europe-based trader says.
One-week volatility is up a third day, rises 49bps to 10.55%, its highest level since Nov. 20, as the last full trading week of the year includes the Bank of Japan policy decision on Friday.
Confidence among Japan’s large manufacturers rose to the highest level in four years, reinforcing market expectations for the central bank to raise interest rates this week.
Kiwi leads G-10 losses after Reserve Bank of New Zealand Governor Anna Breman said in a statement that financial market conditions have tightened since November policy decision, beyond what is implied by the RBNZ’s central projection for the OCR.
NZD/USD drops as much as 0.7% to 0.5766 before paring losses; AUD/USD down 0.1% to 0.6648.
China’s retail sales growth was the weakest since the crash caused by Covid while investment slumped further.
EUR/USD little changed at 1.1743; GBP/USD reverses losses to climb 0.1% to 1.3386.
Source : Bloomberg.com
