October 09, 2023 14:43 GMT
Pervading Risk-Off Drives USD/JPY to New Lows
- The latest risk-off move fuelling further losses for USD/JPY in recent trade, with the pair touching fresh lows at 148.53, opening Thurs/Fri lows at 148.26/36. The downtick in spot puts prices among the more sizeable expiries for tomorrow's NY cut, with $952mln set to roll-off between Y148.50-75.
- Moves coincide with further strength in Treasury futures (recall cash markets closed) as prices hold just below the earlier highs of 107-22+.
- Risk-off triggered by firmer oil prices and concerns around any spillover from the Israel/Gaza conflict remain the key drivers for price action Monday, with liquidity and volumes likely stemmed by the public holiday in the US.