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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
JPY
The early USD/JPY bias is to fade upticks by the market. The pair currently tracks around session lows in the 146.60/65 region, around 0.20% firmer in yen terms.
- This is consistent with a sharp fall in US-JP yield differentials over recent sessions, see the chart below. The 10-yr government bond yield differential is back to +319, around late 2023 lows and comfortably off mid Jan highs near +350bps. We have stabilized somewhat in early trade today, as Cash US Tsy yields have ticked higher.
- For USD/JPY, we are still some distance from Wednesday lows near 146, which came prior to Powell's push back on a potential March rate cut.
- On the data front the final PMI read for Jan was unchanged at 48.
Fig 1: USD/JPY Versus US-JP 10yr Yield Differential
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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