The Riksbank of Sweden has joined the ranks of G10 central banks cutting rates this year, marking the second such move. Today, the Swedish krona stands as the weakest among G10 currencies, experiencing a decline of approximately 0.45%. Similarly, the Australian dollar and yen have also seen notable decreases.
Meanwhile, US index futures show minimal fluctuations. Gold remains within Monday's trading range, exhibiting stability, while crude oil is experiencing a downturn, with June WTI hovering around the $77 mark, its lowest level since mid-March.
Asia Pacific Markets
Japan is set to report labor earnings tomorrow. Despite discussions surrounding wage increases, actual improvements for employees have yet to materialize.
The market's push for a stronger dollar poses a challenge to Japan's efforts regarding the yen. The dollar has seen consecutive 0.5% gains on Monday, Tuesday, and today.
Notably, the Australian dollar is encountering resistance around the $0.6650 level, a significant barrier observed since April, reinforced by last week's US jobs data. After fluctuating within Monday's range yesterday, the Aussie settled slightly inside.
European markets
The Riksbank of Sweden announced a 25 basis point cut in the deposit rate today and hinted at the possibility of two more cuts in the second half of 2024.
The Bank of England is scheduled to meet tomorrow, with expectations leaning towards no rate cuts. The BOE's stance appears dovish, aligning more closely with the ECB than the Fed.
The euro dipped to a three-day low near $1.0735, while sterling's decline continues, nearing last week's low around $1.2465 after peaking post-US jobs report.
American markets
This week sees relatively light US economic data. However, recent survey findings, notably from the ISM, and softer job figures, including a shorter work week, suggest a slowdown in the economy.
Canada's April employment report is due Friday. The US dollar saw a nearly four-week low around CAD1.3610 post-US jobs report, recovering to nearly CAD1.3735 yesterday. Today, it is testing a trendline connecting mid- to late-April highs, situated near CAD1.3755.