MNI BRIEF: Canada Commits To Just One Of Three Fiscal Anchors

MNI BRIEF: German Insolvency Rate Slows, 2025 Pickup Expected

MNI BRIEF: Brazil Not Even Close To Fiscal Dominance - David

CORRECTED-MNI BRIEF: Brazil Inflation Rises To 4.87% In Nov

MNI China Daily Summary: Tuesday, December 10

MNI: USDA: 2024/2025 CORN PRODUCTION EST 15.14B BSL

EZ/UK T-Bill Calendar: 12-Month BOT Auction on Wednesday

EZ/UK Bond Supply Calendar: 4.25% Jul-34 Gilt Due Wednesday

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

USD Scales Back Yield-Driven Appreciation, But USDJPY Remains In Focus

FOREX
  • The USD index has ultimately reversed a large part of its rise seen through the first half of the US session in moves attributed to a marching higher in US yields, with the 10Y real touching fresh highs since 2009 to push the nominal yield to its highest since 2007 with a clearance of 4.35%. An only small paring of these FI losses has seen a surprisingly large paring in the DXY for -0.1% on the day, coinciding with a second half recovery in US equities.
  • Higher yields have however underpinned the bounce for USDJPY. It may be off a session high of 146.404 but still trades at 146.13 (+0.5%), firmly re-establishing itself above the 146 handle.
  • Last week's price action resulted in a break of 145.07, the Jun 30 high, which confirmed a resumption of the uptrend. Moving average studies are in a bull mode condition, highlighting current positive sentiment. The initial target on the topside will be 146.56, last week's high and a resistance that dates back to November last year. Above here, the focus will shift to 147.49, a Fibonacci projection.
  • Reports continue to speculate over potential BOJ intervention, however, there has no been escalation of the usual rhetoric from MOF officials. Indeed, JPMorgan stated that Japan's threshold for currency market intervention on the yen is likely to be around 150 per dollar. Analysts noted that the fundamental conditions in the Japanese economy had been improving since the last time the MoF intervened to lift the yen in September and October last year.
Energy BulletsCommodities
Energy BulletsCommodities

To read the full story

Close

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.