Meanwhile, the yen is in a big spot of bother, FX strategist Kit Juckes at Societe Generale notes.

USD/JPY trades near 160 yet again

“In early May 10-year Note yields were trading above 4.5% and USD/JPY was at 153, but here we are with yields down by 25bop and USD/JPY up near 160 again. Client warnings that with yield differentials this big, it isn’t the direction of those differentials which matters as much as their sheer size, seem to be validated.”

“Value investors are chased away by carry traders and the only way to chase them off decisively may be for the Federal Reserve (Fed) to cut rates (probably more than once). The Bank of Japan (BoJ) is in for a long summer and perhaps a long Autumn too.”