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USD/JPY Climb Accelerates, Narrows In On 2018 Highs

FOREX
  • The upside in USD/JPY accelerated early Friday, with the pair taking out further resistance to print up at 114.38 - just shy of the 114.55 high last printed in 2018. The pair's rally comes alongside further strength in equity markets and as markets continue to assess the policy divergence evident between the BoJ and Fed - with the former having few policy options to shore up domestic currency weakness.
  • As a result, JPY is comfortably the poorest performer in G10 ahead of the NY crossover. GBP is at the other end of the table, rallying against all others as markets respond to the rise in front-end UK yields across the week, as a number of BoE speakers over the past few days flagging the raised likelihood of a rate hike in the coming months.
  • Markets see out the week with a slew of tier one US data, with retail sales, import/export price indices and the prelim October University of Michigan sentiment figures. BoE's Pill, Fed's Bullard & Williams are the key central bank speakers.

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