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USD/JPY Lower As UST Futures Firm, Oil Dip Aiding Sentiment

JPY

USD/JPY is down around 0.25% in the first part of Thursday Asia Pac trade. We last tracked near 149.20, which is close to session lows. Helping the modest yen recovery is a tick higher in US Tsy futures, (last 108-31 +05). The move down in oil prices, with Brent off nearly 1.5% (amid a delayed OEPC+ meeting) is likely helping sentiment in this space.

  • A reminder Japan markets are closed today for the Labor Thanksgiving holiday.
  • Markets return tomorrow, which also delivers Oct CPI. The market expects headline at 3.4% y/y (prior), core 3.0%y/y (prior 2.8%) and core (ex fresh-food and energy) at 4.1% y/y (prior 4.2%).
  • For USD/JPY we are well above earlier lows this week (147.15). Wednesday highs were at 149.75.
  • In the option expiry space, note the following expiries for later today at the NY cut (BBG/DTCC): 149.00 ($1.48b), 155.00 ($1.39b), 151.00 ($927.3m)

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