The dollar continues to hold firmer and barring any surprise headlines, is likely to keep steadier until we get to the US CPI report later this week. That will mark the next test for the greenback after the non-farm payrolls last Friday. For now, the Fed outlook continues to be reaffirmed as noted yesterday here.
USD/JPY is one to take note of though as it is looking to run up against last week's highs around 143.55-88 before perhaps taking another look at 145.00 again. Higher yields and the fact that the BOJ looks to be drawing a bit of a line in 10-year JGB yields at 0.65% is helping to underpin the pair so far this week.
In other markets, stocks managed to stop the rot after a poor start to August trading with Wall Street closing higher yesterday. That is just a slight consolation though as futures are pointing lower today with China's poor trade balance data not really helping. Summer time sadness for equities?
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