Is yen weakness here to stay?

Is yen weakness here to stay?
Is yen weakness here to stay?

In May, financial markets are generally calm, and last week was no different.

There was virtually no major economic data, except for the meeting of the Reserve Bank of Australiawhere no monetary changes were decided, although the post-meeting communiqué hinted that a rate cut or rise was possible due to inflation challenges in Australia and the United States.

To UNITED STATESthe only notable statistic was the New York Fed’s survey of consumer expectations, which confirmed that housing prices and rents are expected to continue to rise, which is concerning because inflation in this sector is problematic .

This makes a U.S. rate cut in June unlikely, as more data will be needed to determine whether inflation is temporary or structural.

That said, it appears that rates will remain high in the United States, which will support the dollar as investors seek safe returns. This partly explains the strong performance of US stock markets this year.

For EUR/USD, this could cause the euro to fall towards 1.05, reflecting the economic fundamentals of the euro zone. Although the economic recovery is slow in Europe, it will not be enough to close the gap with the United States. A striking example is that France’s GDP is now lower than that of Texas and California, emphasizing the European dropout since the 2000s.

-

-

PREV Togo: death of former Prime Minister Kwassi Klutsè
NEXT Rouen Métropole Basket faces Orléans Loiret Basket in match 2 from 3:00 p.m.