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USD/JPY Tests Multi-Year Highs

FOREX

The greenback has pushed higher in early trade, approaching Thursday's high. US President Biden signed a bill to increase the debt limit. This has seen USD/JPY hit the highest levels since 2018, Japanese PM Kishida reiterated his pledge to unveil a stimulus package worth "tens of trillion of yen" after the election. He noted that his government will outline plans for post-Covid recovery as soon as today.

  • Commodity currencies softening slightly after Thursday's rally, pressured by strength in USD, idiosyncratic newsflow has been thin on the ground. USD/CAD pushing higher, BOC's Macklem said the Central Bank was ready to act on inflation if needed and said the recovery has been stronger than expected.
  • A limited session for data in Asia. In the US retail sales data for September crosses on Friday, with import/export price numbers also due. UMich data is prelim for October, so could also draw focus. Fed's Bullard, Harker and Williams are also due to speak.

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