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💹USD/JPY Extends Interest Rate Differential Catch Up: Cable FX Macro

  • The last coupe of sessions has been heavy for the dollar-yen cross, the BoJ hikes rates while the FOMC signals easing might be as soon as the next meeting

  • UST-JGB differential has been pointing to lower USD/JPY for some time, the catch-up extended on Wednesday to record a 6.8% dip on the month, this is the largest monthly loss since November 2022

  • Below, the lower panel shows daily changes in the Cable FX Macro USD Spreads index, a measure of front-end dollar rate differentials vs G10 peers. The index recorded the second-largest downside this year. This means a deterioration of the dollar yield advantage



 
 
 

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