 Yen is asserting dominance in today’s markets, benefiting from notable decline in US and European benchmark treasury yields. US 10-year yield, in particular, is seeing a renewed drop, which is gaining momentum alongside the weakening USD/JPY. This raises the risks that both could be reversing their rallies that began in mid-September. However, with reduced liquidity during the US Thanksgiving holiday, current price actions could be exaggerated, leaving markets to await next week for more definitive trend signals. Overall in the currency markets, New Zealand Dollar is the second-best performer today after Yen, as investors continue to digest RBNZ's latest rate projections. The central bank’s guidance has left markets divided on whether February will bring another 50bps rate cut or a more modest 25bps adjustment. Meanwhile, Euro ranks third, partly supported by hawkish remarks from a senior ECB official. Despite this, Euro’s movement still appears more like consolidation of its recent losses rather than a clear trend reversal. On the weaker side, Dollar leads the day’s losses, followed by Loonie and Aussie. Both currencies remain under pressure from trade and domestic growth concerns. Sterling and Swiss Franc are holding middle positions.... |
