J.P. Morgan's G10 FX desk remains tactically long USD while monitoring Iran-US geopolitical headlines and potential Japanese intervention at 159.30/40. The desk is maintaining shorts in CHF, CAD, and GBP crosses, while profit-taking on recent AUD/NZD moves.
Key Takeaways
- 1.Market sentiment is currently trapped in a 'washing machine' cycle due to an Iran-US geopolitical stalemate, with participants waiting for a definitive deal or clear skirmish escalation.
- 2.The desk maintains a structural long USD bias, though enthusiasm is tempered by month-end effects and upcoming US data/Fed speakers (Warsh).
- 3.USDJPY is in 'danger territory' for potential Ministry of Finance (MoF) intervention as it probes the 159.30/40 level.
Table of Contents
- G10 FX
- JPY
- AUD
- C
- SEK/NOK
Document Preview
Access the Full Report
Get unlimited access to institutional research reports with a 14-day free trial.
Authors
Laoise Ni Thighearnaigh
Securities
USDJPYEURUSDUSDCHFAUDNZDGBPUSD
Themes
Geopolitical StalemateCentral Bank Intervention WatchUS Leadership Transition (Warsh Fed)
Regions
GlobalEuropeUnited StatesIranJapan