Kevin Buckland

TOKYO, Reuters – After Wall Street’s impressive start to the week, the safe-haven dollar recovered some overnight losses. The yen strengthened after the U.S. stock markets fell following a Snapchat profit warning.

After Monday’s 0.85% plunge, the, which compares the currency to six other major currencies, rose 0.1% and jumped 0.24. This was a significant improvement on the almost two-decade high of 105 at mid-month.

However, the greenback fell against the preeminent haven currency, the yen. It dropped 0.18%, to 127.695yen.

While the euro lost 0.2% to $1.0672 on Monday, the surge of 1.17% from Monday was barely diminished by Christine Lagarde’s announcement that euro central bank president Christine Lagarde expected policymakers to raise the euro zone deposit rate to positive territory by September end, the euro still fell 0.2%.

Sterling fell 0.2% to $1.2558, while the risk-sensitive dollar declined by 0.46%.

U.S. stock options indicated a drop of 0.81% for the Nasdaq, and an increase of 1.41% for the Nasdaq. These numbers tarnishing Monday’s strong session that saw the indexes gain 1.86% compared to 1.68% on Monday. [.N]

Traders pointed out a Snapchat profit warning (NYSE:) that Snapchat’s owner Snap sent after the bell, which caused stock to tumble 28% over extended trading.

Dollar has fallen alongside falling Treasury yields, a result of multi-year highs. Fed Reserve aggressive easing is already priced in.

Positive indicators for the global economic have lifted sentiment, including Shanghai’s expected recovery from the weeks-long COVID-19 lockdowns. And U.S. President Joe Biden’s statements this week in favor of easing the trade war against China.

Currency traders will also be paying attention to Tuesday’s release of the global manufacturing PMIs.

Joseph Capurso (OTC): A strategist with Commonwealth Bank of Australia, said that “if the data are good, then it should continue the trend of easing dollars as the global economy recovers form various shocks.”

“The U.S. dollars are at the peak, and commodity currencies like Australia are at the bottom. However, it is going to be rough.”