Summary

• The dollar initially extended its gains against most of the G10 currencies but was sold in Europe and will begin the North American session lower except against the Japanese yen.
• The dollar’s setback in Europe has stretched the intraday momentum indicators, and North American participants may see the dip as a new buying opportunity.
• The dollar rose for the past five sessions against the Japanese yen and reached JPY158.85 before the weekend. The gains have been extended today to almost JPY159.10, its best level since the BOJ reportedly intervened on April 30.
• Japan’s Prime Minister Takaichi has reconsidered her initial reluctance and has endorsed a supplemental budget to help households and businesses cope with the commodity shock.
• Although the Canadian dollar was the best-performing G10 currency against the US dollar last week, its 0.55% decline was sufficient to push it to its lowest level in a month. The Canadian dollar has fallen for the past eight consecutive sessions.

The dollar (DXY) initially extended its gains against most of the G10 currencies but was sold in Europe and will begin the North American session lower except against the Japanese yen. Japan’s Prime Minister Takaichi

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