It’s been a rather quiet week in FX markets after some early dollar strength subsided with much of the Fed pushback to easing expectations priced in. But when volatility is low, carry runs high. This could have made CHF and JPY as the underperformers for this week so far, but there were some other factors that underpinned those moves as well. USDJPY rallied back to mid-149 levels after BoJ Deputy Governor Shinichi Uchida said yesterday that termination of the negative interest rate policy in Japan would likely be one-off, instead of the start of an aggressive rate hiking cycle. He said that overall accommodative ... (full story)