USD Continues To Lose Ground, JPY Plays Catch Up

The USD continues to lose ground, the DXY is now sub 109.00, fresh lows back to the start of the month. Losses for the dollar have been broad based, but this afternoon JPY has played catch up. The yen was a laggard in the first half of the session, but is now around 1% firmer versus NY closing levels. The pair is back to 142.75, (the low was just under 142.50).

• Outside of comments from Japan officials on FX (notably Kuroda), we are seeing UST yields edge lower. The 2yr is down close to 2bps on the session (to 3.485%), which is likely helping at the margin.
• From a level’s standpoint in USD/JPY, we have the high 141 region, then around 140.80, the high from September 2.
• EUR/USD is above 1.0070, but has lost ground against the yen this afternoon, ahead of the key energy ministers meeting later today.
• AUD/USD is up over 1.10% to 0.6825/30, only trailing NOK as best performer on the day. Higher commodity prices (copper and iron ore) are helping the A$. China's equity property sub-index is up over 3% so far today (see this link for more details on some optimism around the sector).
• NZD/USD has tracked AUD gains, albeit with a slight lag, the pair last just above 0.6100.
• GBP/USD is just under 1.1590 matching EUR gains.
• Looking ahead, the EU energy ministers meeting will be a key focus today. Expect lighter activity in the UK as the country mourns the passing of the Queen. In the US, Fedspeak from Evans, Waller and George is all on tap. Evans won't cover monetary policy though.