European FX Open - USD/YEN on its way to 150?

USD/YEN fell to 152.23 overnight, levels not seen since May 3.

Risk off sentiment looked the ultimate driver with global stocks a sea of thick red over the last 24 hours. Bbg reports a Usd 1tln rout in the Nasdaq 100 Index as questions swirled over just how long it will take for the substantial investments in AI technology to pay off.

Carry trades continue to be pared as expectations for a BOJ rate hike in July continue to rise and Fed rate cut speculation increases. Yield differentials!

Is a 150 push just around the corner in USD/YEN?

The commodity bloc have been victims of the negativity too and USD/CAD starts the day higher post-BOC rate cut Wednesday.

To today and Swedish PPI and household lending kick things off a the top of the hour.

After the ECB highlighted downside risks to growth traders/investors will keep a keen eye on the French confidence and German IFO surveys today though the latter is seen inching higher in July in all three components.

In the second half, the first release of US Q2 GDP leads, forecast at 2.0% annualised q/q vs 1.4% last and initial claims, as relative softness in the labour market stays under the spotlight.

ECB's Nagel and Lagarde are scheduled speakers.

Overnight, the PBOC lowered its 1-year MTLFR policy loans to 2.30% from 2.50% and a largest easing since April 2020. The move, of course, followed the semi-surprise reduction to 1 and 5-year LPRs key short-term rates Monday to help boost slowing economic activity.

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