Key Takeaways:
- 💵 The US dollar rebounded following losses against the euro, sterling, and Swiss franc
- 📉 Job openings in the US fell more than expected in April to the lowest level in more than three years
- 📅 Market focus was on the JOLTS data ahead of the US job report expected to show new jobs created in May
- 📊 Dollar index was up 0.2% with euro falling to $1.0868
- 🇯🇵 The yen rose to a three-week high against the greenback as Bank of Japan officials warned about currency impact and discussed bond purchases
- 💱 Carry trades unwinding led to yen and Swiss franc gains, with Mexican peso and Indian rupee down against the dollar
- 🛢️ Drop in oil prices impacted currency markets, with Australian dollar and Norway’s crown falling against the greenback
- 📈 Yen is the strongest G10 currency amid dollar’s recovery
- 📈 Swiss franc and Japanese yen clocked big gains during the trading session
Article:
The US dollar experienced a rebound in the currency markets after facing losses against major currencies such as the euro, sterling, and Swiss franc. This resurgence came after a period of decline and instability in the foreign exchange market.
Job openings in the US took an unexpected hit in April, dropping to their lowest level in more than three years. This decline raised concerns about the labor market’s recovery and its impact on the overall economic landscape. Investors were closely watching the JOLTS data ahead of the highly anticipated US job report, which was expected to shed light on new job creation in May.
Meanwhile, the yen saw a significant rise, reaching a three-week high against the greenback. Bank of Japan officials’ warnings about currency impacts and discussions on bond purchases contributed to the yen’s strengthening position. Additionally, unwinding carry trades led to gains for the yen and Swiss franc, while other currencies such as the Mexican peso and Indian rupee faced downturns against the dollar.
The drop in oil prices had a notable impact on currency markets, with the Australian dollar and Norway’s crown both falling in value against the greenback. Amidst these fluctuations, the yen emerged as the strongest G10 currency, and the Swiss franc and Japanese yen stood out with considerable gains during the trading session.