The US greenback jumped within the aftermath of the PCE report, although I am unsure that correlation equals causation. The PCE report was a contact low, highlighting the downtrend in inflation. That ought to have weighed on the greenback and did initially, albeit barely.
A short while later the greenback rebounded and Treasury yields inched larger in what’s more-likely a case of month-end flows. It was a unstable month within the FX market and USD/JPY specifically. Proper now could be the most-liquid time of the day in FX and the transfer was doubtless a sign of robust flows forward of the lengthy weekend within the US, with some buy-stops run on the break of the weekly highs as nicely.
USD/JPY 30 minutes
