Summary

• The dollar (DXY) is trading with a firmer bias, recovering from yesterday’s losses in the North American afternoon.
• A poor employment report and the weak PMI have made the Australian dollar the weakest of the G10 currencies after it led the pack yesterday.
• The dollar has moved mostly sideways against the offshore yuan so far this week. The range has been roughly between CNH6.7960 and CNH6.8215. The dollar is at the lower end of that range today.
• The rally in US equities and the favorable response to Nvidia’s earnings helped arrest the four-day slide in the MSCI Asia Pacific Index. Most of the large bourses outside China and India were higher.
• Europe’s Stoxx 600 is rising for the fourth consecutive session. If sustained, it would match the longest advance of the year. US index futures are narrowly mixed.

There have been no further developments to fuel optimism about the Strait of Hormuz. Polymarket shows little change in the assessment that there is around a 35% chance that the Strait is open by the end