Risk back on the table following the.....>

DOLLAR-YEN: Risk back on the table following the EU migration policy deal

triggered renewed demand via the crosses overnight. As EURJPY spiked 120 pips

through Y129.00, USDJPY tracked the move to extended react highs of Y110.79. The

pair already held firm after the BoJ reduced buying of 5-10 year bonds by Y20bn

to Y410bn and will now look to challenge the Y111.00 area for the next leg

higher. On the US calendar today PCE and Personal Income are released at

1230GMT. Personal income is expected to rise by 0.4% in May, as payrolls rose

223,000 and hourly earnings rose 0.3%, while average weekly hours stayed at 34.5

hours. Current dollar PCE is forecast to rise by 0.4% after a 0.6% April gain.

The MNI Chicago PMI follows at 1345GMT and is expected to fall back to a reading

of 60.1 in June after rising to 62.7 in May. USDJPY last Y110.69. 

Option-expiries - Y109.00($820mn), Y110.00($372mn), Y110.50-51($617mn).