USD/JPY Jumps to Monthly High, US Dollar Eyes PCE Inflation Due

 USD/JPY Jumps to Monthly High, US Dollar Eyes PCE Inflation Due

US DOLLAR OUTLOOK: USD/JPY PULLED HIGHER WITH YIELDS AS MARKETS AWAIT PCE INFLATION DATA

  • US Dollar traded mixed and left the DXY Index little changed on Thursday
  • USD/JPY surged 70-pips as Treasury yields ticked higher ahead of PCE data
  • The Yen weakened broadly and likely exacerbated recent USD/JPY strength

The US Dollar finished Thursday’s trading session practically flat gauging by the DXY Index. US Dollar price action was a mixed bag across the board of major currency pairs with strength against the Yen largely offsetting weakness versus the Sterling. Treasury yields climbed for the second day in a row with the ten-year extending its rebound off Wednesday’s swing low to 5.4-basis points. Bond yields stayed perky even after strong demand was seen for today’s $62-billion seven-year Treasury auction.

This likely helped propel USD/JPY to a fresh monthly high, though the bid arguably looked exacerbated by a broadly softer Yen….

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