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USD/JPY: Difficult for Fed to abandon higher for longer with no new data for guidance
US bond yields are pushing higher, retracing some of the ground ceded following last Wednesday’s inflation and retail sales reports. With no top tier economic data to navigate this week, Fed speak is likely to be more influential than usual. And given the Fed is data dependent when assessing the US interest rate outlook, with no new information to consider, it’s difficult to see their narrative shifting from it still being far too soon to consider rate cuts. That points to upside risks for USD/JPY, especially if risk appetite holds up. Too soon to stop buying USD dips With US Treasury yields drifting higher as ... (full story)