Free Trial

USD/JPY To Fresh Highs, While GBP Outperforms

FOREX

USD/JPY has pushed to fresh highs this afternoon. The pair is above 140.80, highs from late last week and closing in 141 (last 140.90/95). The move is in line with a late afternoon surge in UST yields (the 2yr at 3.46%, +7bps), while a mixed tone to regional equities hasn't impact sentiment a great deal.

  • There were comments early from Japanese officials around FX, but nothing that hasn't been heard before.
  • The DXY is back close 109.70, after dipping in the first half of trading (low of just under 109.40).
  • GBP remains the standout, sitting around 1.1565, buoyed by the new PM's energy plans. We are down from earlier highs close to 1.1600 though. EUR/USD has mostly followed GBP gyrations, we are back sub 0.9950 now.
  • AUD/USD is around 0.6800, recovering from an earlier post RBA dip. There was no dovish surprise from the RBA, but the currency is now back to following broader USD trends. AU yields have climbed post the announcement (2yr back close to 3.00%, from earlier lows at 2.93%).
  • Data suggests a solid outcome for Australian GDP tomorrow, with upside risks to the 1% q/q forecast.
  • NZD/USD is back sub 0.6100, losing momentum through the afternoon. The AUD/NZD cross has edged higher post RBA from around 1.1140 to 1.1160/65. This is line with recovering AU-NZ yield momentum.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.