Summary

• The greenback is at new highs for the year against many G10 currencies today, including the euro, sterling, Swedish krona, and the New Zealand and Canadian dollars.
• The euro has taken another leg down today. It has frayed $1.1340, the (38.2%) retracement of the euro’s rise since February 2025.
• The yen spent yesterday consolidating inside Monday’s range. It is in about a JPY161.50-80 range today.
• Equities are mixed today. Most of the large bourses in the Asia-Pacific but Japan and Taiwan rose. South Korea’s Kospi that dropped 10% yesterday bounced back 3.25%.
• Europe’s Stoxx 600 is trading with a heavier bias after dropping nearly 0.75% yesterday. S&P and Nasdaq futures are trading with a firmer bias (~0.15% and 0.50%, respectively).

The US dollar’s rally is extending today, but the market remains cautious about intervention by Japanese officials. The Dollar Index (DXY) has not fallen since last Tuesday. It has risen by a little more than