The surge higher in the Japanese yen is the big story to start the new week, coming after BOJ governor Ueda's remarks on a "quiet/stealth exit". But you would have to pardon me for still being skeptical and holding some reservations about that.
USD/JPY is down by 1.1% to 146.20 currently, with the unwinding of longs in the pair also inadvertently driving the dollar down across the board. EUR/USD is up 0.3% to 1.0730 while the antipodeans are benefiting strongly, helped by a stronger yuan as well, on the day. AUD/USD is up 0.9% to 0.6435 and NZD/USD also up 0.9% to 0.5930 currently.
As things stand, the focus will be on the yen and the bond market for the most part today. 10-year JGB yields are seeing a sharp jump to 0.705% and that is creating a selloff elsewhere too. 10-year Treasury yields are seen up 4.2 bps to 4.298% at the moment.
In terms of data releases, it will be a quiet one in Europe. And for broader market sentiment, the real focus and key test will only come on Wednesday when we get to the US CPI report.
0800 GMT - SNB total sight deposits w.e. 8 September
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
