Previous Trading Days Events 29.04.2024

The yen dropped against the dollar yesterday quite heavily, wiping out some recent gains sparked by suspected intervention by Japanese authorities.

Japanese authorities havent confirmed that they had stepped into the currency market in support of the yen, but markets remain on heightened intervention alert ahead of the Federal Reserves monetary policy review this week.

The Japanese currency still sits lower than it was before the Bank of Japans BOJ policy announcement last week. It has also suffered its largest monthly decline since January.

Facing that the rates divergence with forex intervention typically does not end well, said Garvey Padhraic, regional head of research Americas at ING.

The Fed begins its twoday monetary policy meeting on Tuesday, where its expected to hold rates at 5.255.5, with U.S. inflation proving to be sticky. A rate cut in September was looking like a close call at just 44, according to CME Groups FedWatch tool.

Other major central banks such as the European Central Bank ECB and the Bank of England BoE may begin to cut rates in the near future, even if the policy path is more uncertain after recent developments.

Source

httpswww.reuters.commarketscurrenciesyenclingssharpgainsaftersuspectedinterventionfedfocus20240430

Winners vs Losers

USDCAD reached the top of the weeks gainers list with 0.33 gains so far. It seems that the dollar remained stable yesterday. The yen jumped against the dollar…