Forex News

US dollar takes a dive as USD/JPY falls towards 148.00. Bonds the likely culprit

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The US dollar is falling across the board.

It’s tempting to point to USD/JPY intervention because there is no data or news behind the move. But what’s curious is that the moves are uniform.

I look to bonds, with yields falling across the curve. US 10-year yields are down 13 bps to a session low of 4.10%.

Our friends over at Newsquawk highlight comments about 30 minutes from Chinese officials talking about focusing on expanding domestic demand and consumption, but that’s hardly a screaming USD-sell and certainly not a reason to buy bonds.

Bond bulls have been looking for a signal to pile in for some time. Today’s housing data was soft and yesterday’s PMIs were weak. Perhaps that’s enough of a crack in the dam to start the flood into fixed income?