Yen rebounds on intervention threat [Video]

Last week’s BoJ meeting and the market reaction to the meeting was a complete disappointment for the yen bulls. Finally, authorities had to step in this Monday and warn against speculative moves. The yen is stronger this morning, the Nikkei is down by nearly 1%. The FX warnings could limit the seller’s appetite, but will unlikely bring the yen bulls back.

Elsewhere, the equity futures are in the red and the dollar index is weaker this Monday morning. But dollar bears are unsure that the Fed will cut rates in June with such strong economy and bumpy inflation. This week, the US will reveal its latest GDP update for the Q4 and the US economy is expected to have grown more than 3% in the final quarter of last year.

US equity markets remain on a euphoric mode on the back of soft Fed and robust data. The European stocks are also on a positive track. Last week’s Reddit and Galderma IPOs went smoothly. And Trump’s Truth Social will become a publicly traded company by as early as this week as DWAY shareholders approved the merger.