FXY

Fifteen countries that make up nearly a third of the world's population and gross domestic product have formed the world's largest trading bloc.The Regional Comprehensive Economic Partnership, or RCEP, was

Since March 24th, 2020, the Invesco CurrencyShares Japanese Yen Trust has gained by 6.52% and this outperformance has surpassed gains seen in important global counterparts from the United States.We see several underlying macroeconomic factors that are capable of favorably influencing valuations in yen-denominated trading instruments and this could continue well into 2021.As a key trigger signal, we are now watching resistance levels near 92.23 as a way of confirming the emergence of a longer-term uptrend but a downside break of 87.70.

The dollar is consolidating yesterday's losses.Equities are lower, and benchmark yields are little changed.The S&P 500 is trading a little lower following yesterday's 0.2% decline.Gold rose almost 1% yesterday, the most in a couple of weeks, on the back of the weaker dollar.WTI for December delivery slumped 4% yesterday and slipped below the $40-mark and straddled today.

The USD has not responded to the rise in VIX in recent days, which has intrigued a lot of traders who have been buying the greenback as a hedge.The US dollar has been negatively correlated to equities in the past 2 years (especially in 2020); hence, lower equities should coincide with a rising dollar.We do remain bearish on the British pound as we still think that it is the most vulnerable currency in the current environment.

The dollar is falling against most of the world's currencies today.Sterling and the Norwegian krone are leading the majors higher.The Chinese yuan extended its gains and is now at the best level since July 2018.In Asia, most of the large markets gained, but China, India, and a handful of smaller bourses were sold.Europe's Dow Jones Stoxx 600 is off for the third day and the sixth session in the past seven.

In the Asia-Pacific region, Japan, Taiwan, and Australian bourses led declines, while China, Honk Kong, South Korea, and India advanced.Europe's Dow Jones Stoxx 600 is straddling little-changed levels.US shares are recouping part of the losses suffered late yesterday.The euro and the Scandis are leading most of the major currencies higher.Emerging market currencies are narrowly mixed.

The US dollar rose against nearly all the major currencies last week. The yen was the sole exception.Of the majors, the Australian dollar suffered more than a 2% decline following the strongest signals to date that that Reserve Bank of Australia will do more to support the economy.However, it is still a question of precisely what it will do.

Led by a 2% drop in Hong Kong, Asia-Pacific equities tumbled, with the exception of Australia.The Dow Jones Stoxx 600 is off for a third day, but the nearly 2.2% decline is the largest drop since September 21.US shares are also lower.The dollar is gaining across the board.The Antipodeans and Scandis are the weakest. Even the yen is softer.