USD/JPY back nudging towards 150 – Japanese (verbal) intervention has started already

The USD jumped higher in Thursday trade following the inflation data. ICYMI:

US September CPI +3.7% y/y versus +3.6% y/y expected


USD/JPY is back on approach to 150:

It seems likely there will verbal intervention comments from Japan during the session here today. And note that such intervention started already overnight. A senior Japanese finance ministry official attending the G7 finance leaders’ gathering in Marrakech highlighted that the Group of Seven (G7) statement:

  • reaffirmed the group’s shared understanding that excess currency volatility is problematic
  • and that exchange-rate moves must reflect fundamentals

If there is anyone in Marrakech reading this could you let this official know that the huge yield differential between the US and Japan that’s driving USD/JPY higher IS a key fundamental. TIA.

This article was written by Eamonn Sheridan at Source