- Gold down $5 to $1621
- WTI crude up 27-cents to $84.80
- US 10-year yields up 3 bps to 4.26%
- S&P 500 futures down 9 points
- USD leads, NZD lags
USD/JPY is at a fresh 32-year high at the moment with yields beginning a fresh climb. There were some thoughts that a hot Japanese CPI report would raise questions about a shift form the BOJ at the upcoming meeting but the numbers were modest (showhow?). In addition, the BOJ raised its regular bond purchases in a sign that no shifts are coming.
USD/JPY is now higher for a 13th straight day as the perfect storm continues to envelop the yen. Politica pressures are rising on Japanese politicians but signs of action are tough to find.
The dollar is broadly higher and a better New Zealand trade number did nothing for the kiwi, which is lagging. Earnings reports in the US weighed on ad-supported tech with Snap withdrawing guidance. Whirlpool numbers also highlighted the drag from FX. That said, futures aren’t down much and the Nikkei is down just 0.2%.
Cable will obviously remain in focus with a rough timeline now putting in a new UK PM by next Friday but the lack of democratic input is going to be controversial. Expect a heavy dose of drama in the week ahead but even with all the turmoil it’s tough to imagine it getting any worse than the last 24 hours. Cable initially earned a relief rally but it’s back below 1.1200 and sagging today.