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USD/JPY bears smelling blood
The US dollar has started the new week on the front foot after being hammered in the last couple of weeks on rising probabilities of a rate cut by the Federal Reserve. As my colleague Matt Weller noted earlier, traders are now pricing in an over 80% chance of a rate cut by the end of July. Despite this, the USD/JPY fell only slightly last week and was up at the start of this week. The safe haven yen is undoubtedly undermined by the ongoing “risk-on” rally – owing to news that the US and Mexico have reached an agreement over migration, allowing the latter to avoid the 5% tariffs threatened by Trump. However, ... (full story)