USD/JPY still looks vulnerable after a swift fall in 10-year Treasury yields.
US10 year yields intraday
The market is pre-conditioned to focus on employment after years of trouble in the jobs market but the focus is shifting to inflation.
Evans was on the wires earlier barking about how unrealistic a return to 2% inflation is. He says it’s more than a hope than anything based on data.
With the US dollar so strong, the inflation picture is even weaker. Wage growth numbers in the US jobs report were soft.
Compounding the concern at the moment is that profit taking on dollar longs into the weekend continues to remain a possibility.
