Aside from the broad advance of the US dollar across the majors, the other FX theme was a rebound in risk appetite. This proved an unfavorable wind for the Japanese yen, which would fall over 100 points against the US dollar through Thursday’s session.
However, the gravity of risk trends were relatively mild in comparison to past weeks, though fundamental over the coming week could quickly change that fact. Growth numbers from the UK and US and a FOMC rate decision could rouse caution; but for the yen, tonight’s CPI numbers will be front line event risk. The National numbers are expected to step up to a new decade high. Will this alter weak BoJ rate expectations?