USD

A nascent recovery in the dollar is stalling out this morning as geopolitical risks in the Middle East, Japan, and the euro area show signs of easing. The greenback is down -0.2 percent against a basket of its major counterparts, Treasury yields are edging lower, and US equity indices are setting up for a modestly-positive open. Oil prices are slipping as markets remain oversupplied and risk premia evaporate in the face of a potential peace agreement between Israel and Hamas, and terms of trade indices—which measure the ratio of export prices to import prices—are turning against the US dollar. The...

Currencies outside the US are in consolidation mode. The Japanese yen is holding near the 153 threshold as traders turn more sceptical on the Takaichi administration’s capacity for delivering fiscal and monetary stimulus, the euro is treading water in line with an ebbing in French political headlines, and the British pound is inching higher amid a lack of domestic rate catalysts. The Canadian dollar—stuck in a narrow technical trading range for days—is moving sideways ahead of a speech from Bank of Canada Deputy Governor Carolyn Rogers, and the Mexican peso is pushing higher as optimism surrounding trade relations with the...