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Euro's Recovery to $1.09 Looks Vulnerable while Yen Falls to New Lows for the Week After Strong Pay Raises Confirmed
At the end of last week, the derivatives market was again pricing in nearly four Fed cuts this year, but this week's data have seen expectations re-converge with the Fed's three rate cuts signaled in December, while cutting the odds of June hike to the lowest in the more than four months. This has helped lift the dollar against all the G10 currencies this week. As is often the case in a firm US dollar environment, the Canadian dollar has fared the best, slipping only 0.4%. Despite heightened speculation that the Bank of Japan could hike rates as early as next week and strong wage gains for employees at large ... (full story)