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USD/JPY Nears 143.00, Yen Weakest Performer In G10 Space

JPY

USD/JPY is around +0.25% firmer so far in Tuesday trade. This puts us back at the 142.85/90 level (highs for the session at 142.95). This is above yesterday and Friday session highs. A slightly firmer tone to US yields at the front end is likely weighing on the yen (US 2yr at 4.78%), albeit at the margins. US-JP 10yr swap spreads are relatively steady at +295bps.

  • Earlier data showed weaker than expected real wages data and household spending. June current account and trade balance figures were close to expectations.
  • Broader USD sentiment is a touch firmer, the BBDXY +0.10%, although yen the weakest performer in the G10 space so far today.

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