Free Trial
PHP

Peso Edges Higher On Narrower BoP Deficit

CHINA RATES

China Repo Rates Rise on Tuesday

AUSSIE BONDS

Marginally Firmer On Better Than Expected Budget

US TSYS

10-Year Yields Stick To Uptrend Channel Into Fed

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Yen Dominance Continues

JPY

Monday brought an extension to the yen's impressive rebound from recent cyclical lows, with USD/JPY tumbling past consecutive round figures to bottom out at Y131.60 (that level has already been breached this morning).

  • Blame continued reassessment of the outlook for Fed/BoJ policy divergence coupled with fresh safe haven demand amid heightened geopolitical risks and headwinds to global growth.
  • Demand for safety promoted the tightening in Japan/U.S. yield differential. The gap between 10-year yield shrank ~8bp on Monday as U.S. Tsys richened.
  • USD/JPY 1-month risk reversal sank deeper into negative territory, hitting its worst levels since Jul 14, as bearish sentiment keeps building among options traders.
  • Selling pressure extends into the Tokyo session, briefly sending USD/JPY past key support from Jun 16 low of Y131.50 to its lowest point in two months. Jitters surrounding U.S. House Speaker Pelosi's touted Taiwan trip are likely helping the yen.
  • The pair last deals at Y131.51, down 10 pips on the day. The next target on the downside is Y130.00, a psychologically significant round figure. Bulls need a rebound above Jul 27 high of Y137.46 to get some reprieve.
  • Looking ahead, Japan's earnings/spending data will be published this Friday.
188 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

Monday brought an extension to the yen's impressive rebound from recent cyclical lows, with USD/JPY tumbling past consecutive round figures to bottom out at Y131.60 (that level has already been breached this morning).

  • Blame continued reassessment of the outlook for Fed/BoJ policy divergence coupled with fresh safe haven demand amid heightened geopolitical risks and headwinds to global growth.
  • Demand for safety promoted the tightening in Japan/U.S. yield differential. The gap between 10-year yield shrank ~8bp on Monday as U.S. Tsys richened.
  • USD/JPY 1-month risk reversal sank deeper into negative territory, hitting its worst levels since Jul 14, as bearish sentiment keeps building among options traders.
  • Selling pressure extends into the Tokyo session, briefly sending USD/JPY past key support from Jun 16 low of Y131.50 to its lowest point in two months. Jitters surrounding U.S. House Speaker Pelosi's touted Taiwan trip are likely helping the yen.
  • The pair last deals at Y131.51, down 10 pips on the day. The next target on the downside is Y130.00, a psychologically significant round figure. Bulls need a rebound above Jul 27 high of Y137.46 to get some reprieve.
  • Looking ahead, Japan's earnings/spending data will be published this Friday.