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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
USD/JPY is back above 132.00, last near 132.10/150, around +0.60% higher for the session. The yen is the weakest performer within the G10 so far today, with CAD next worst at -0.25%. Last Monday, post payrolls, the high came in just above 132.90, but prior to that we have the 50-day EMA at 132.71.
- USD/JPY is now +1.80% up on Friday's lows, which came about post BoJ leadership headlines.
- The pair also looks to be playing some catch up with the more supportive yield backdrop for the USD. The chart below plots USD/JPY versus the US-JP 10yr swap rate yield spread.
- The disconnect has not been large but the two series have shared a tight correlation in recent months. This is likely to be a focus for markets as we approach Tuesday's US CPI print.
Fig 1: USD/JPY Versus US-JP 10yr Spread
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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