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….