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New Highs for USD/JPY, But Suzuki Won't Be Drawn on Rates

  • JPY has started the week on the back foot, slipping against most others in G10 to keep USD/JPY at new cycle highs, touching 151.86 headed into the European morning. The moves were shortly followed by a reiteration of the Japanese authorities' stance on the currency, as Suzuki stressed that while he cannot comment on currency levels, the Japanese finance ministry will monitor markets and respond with a sense of urgency, with market prices needing to be set by fundamentals, rather than speculation.
  • The USD is more mixed, sitting mid-table headed into the NY crossover, with the 50-dma in the USD Index remaining a solid anchor for prices. Short-term trends remain pointed higher for the greenback, however prices are still below pre-NFP levels.
  • AUD is modestly the best performer, aided by positive equity markets across European cash markets, however US futures point to a more modest open at the US opening bell later today. NOK sits at the other end of the G10 table, as markets partially reverse the sharp post-inflation strength seen on Friday.
  • The Monday session sees a light schedule, with focus and risk events back-loaded later in the week, with US, UK and Eurozone inflation updates due. Speakers today include newest addition to the BoE MPC Breeden as well as Mann and Fed's Cook.
MNI London Bureau | +44 203-865-3809 |
MNI London Bureau | +44 203-865-3809 |

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