USDJPY daily
The US dollar is broadly higher and adding to momentum at the moment.
Economic data today was a mixed bag and I don’t think that was the driver. Yields are moving up for the second day today and that’s certainly helping USD. Ten-year benchmark Treasuries are up 4.5 bps to 3.79%, which is a session high.
This move to me looks like it’s driven by month-end flows and perhaps by longer-term USD bids. This is shaping up to be the worst month for the dollar in a decade but it comes after many months of gains. That’s the typical ‘up the escalator, down the elevator’ price action in a bull market.
If this is driven by month end, it will flatten out after the London fix at the top of the hour and and London close in 90 mins.