Yen Leads Gains Even as Options Bias Turns Bearish
The yen outperformed peers on hawkish Bank of Japan signals, even as options sentiment turned bearish on political risk.
USD/JPY falls 0.7% to 148.47 after Asahi Noguchi, a dovish board member, pointed to the rising need for an interest rate hike — signaling broadening support for action.
The dollar falls against all Group-of-10 currencies with focus on US jobs data due this week and amid the risk of a possible US government shutdown.
The Bloomberg Dollar Spot Index drops as much as 0.3% before top congressional leaders meet with President Donald Trump later Monday to discuss a short-term spending bill ahead of the deadline to avoid a shutdown.
Treasury 10-year yields slip 3bps to 4.14% as money markets add 1-2bps on dovish Fed bets across the curve.
EUR/USD up a second day, rises 0.3% to 1.1733 before paring the advance.
GBP/USD rallies by 0.4% to 1.3450; Chancellor of the Exchequer Rachel Reeves ruled out a UK wealth tax.
Source : Bloomberg.com