From Marc to Market:
Overview: The greenback's drop has been extended today against most of the G10 currencies, but not the growth-sensitive dollar bloc, which is underperforming today. Still, ahead of the US jobs report and Fed Chair Powell's speech on the economic outlook, all the G10 currencies have appreciated by at least 1% this week. The Swedish krona's 6.7% rise tops the board, but the euro's 4.7% rally is its best weekly performance since 2009. The Turkish lira has the dubious honor of being the only emerging market currencies to have fallen today, though most of Latam markets have yet to open. The JP Morgan Emerging Market Currency Index is up 1.85% this week. It has risen in seven of this year's first ten weeks. The on-again off-again US tariffs is a bit like Woody Allen's complaint about a restaurant: the food was poor, and the servings were small. Most economists regard the tariffs as risk to prices and growth and the uncertainty, and dare one say, whimsical nature of the announcements, seems to compound the worst elements, and in short run exacerbating the trade imbalances.
European 10-year bond yields have steadied today but are up around 35 bp this week. The 10-year US Treasury yield is softer near 4.27% and is up 11 bp this week, which is the same for the 10-year Japanese government bond yield, which is now near 1.51%, the highest since 2009. Equities in Asia Pacific and Europe are weaker, but the US index futures are posting a small gain. Gold is trading quietly but firmly and remains within the range set on Tuesday (~$2882-$2927). April WTI fell to six-month lows (~$65.20) in the middle of the and is now near $67.25, which still leaves it down about 3.6% this week, which is the seventh consecutive weekly decline....
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