The US dollar has recovered some of yesterday’s steep losses after retail sales and the Empire Fed manufacturing survey were stronger than expected.
USD/JPY led the way in a rise to 150.77 from 150.25 while other dollar moves were limited to around 30 pips. The dollar is getting some support from Treasuries, where yields are up 3.5-7 bps across the curve. Fed pricing has cooled after yesterday’s big moves and 93 bps are priced in for next year from 101 bps yesterday.
USDJPY 10 mins