There aren’t any major expiries to take note of on the day, with the full list seen below.
The dollar is managing to recoup losses from earlier this week, following the softer US CPI and PPI reports. The turn owes much to the continued focus on inflation worries, as well as a more hawkish Fed outlook, with the US-Iran conflict starting back up again.
That being said, yields are backing off slightly today but still keeping elevated since the turn of the month. As such, that continues to underpin the macro backdrop in pushing the dollar up against the rest of the major currencies bloc – in particular USD/JPY. That said, intervention risks is still the name of the game for said currency pair with Tokyo officials watching things very closely.
As for broader dollar sentiment, much of that now rests on further US-Iran developments and also the overall risk mood in markets. The latter is coming back into focus amid a heavy tech selloff we’re seeing, after a light breather in the middle of the week.
Semiconductors and chipmakers are being punished hard again and that’s leading to a renewed downturn at the end of the week. Things are looking rough and if that keeps up, safety flows could well keep the dollar underpinned before we get to the weekend. So, that’s just something to be wary about even if major currencies have not been all too sensitive to risk developments for much of the year. Instead, the main driver and big picture narrative for major currencies is one that is tied to the rates market. But still, it doesn’t discount the possibility of traders reacting to heavy risk selling especially in a more volatile and troubling risk environment.
For more information on how to use this data, you may refer to this post here.
