The report highlights a tactical pivot toward USD longs amid hot US PPI data and rising Treasury yields, while monitoring significant JGB yield moves and UK political instability.
Key Takeaways
- 1.Tactical shift toward a stronger US Dollar (USD) driven by US equity outperformance, hotter-than-expected PPI data, and a hawkish Fed outlook.
- 2.Japanese Government Bond (JGB) yields have hit multi-decade highs, increasing the likelihood of Ministry of Finance (MoF) intervention if USD/JPY breaches 158.
- 3.UK political uncertainty, specifically rumors of Health Secretary Streeting's resignation and leadership challenges, is creating tactical volatility for Sterling (GBP).
Table of Contents
- JPY
- CHF
- Riksbank minutes
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Authors
Laoise Ni Thighearnaigh
Securities
EURUSDUSDCHFUSDJPYAUDCHFGBPUSD
Themes
Geopolitical Normalization of Iran ConflictCentral Bank Policy Divergence
Regions
North AmericaEuropeUKUnited StatesJapanUnited Kingdom