Yen Shock Hits the Dollar Just Before the U.S. Jobs Report
Speculation about yen intervention followed a sudden drop in dollar yen, yet the selling that came after was smooth and steady rather than sharp and disorderly. Markets now carry far more Bank of Japan tightening for this year than before the late July episode. A reverse carry trade sits behind it, alongside a dollar slipping against the euro, the Australian dollar, and gold.
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The Japanese yen rally looks less like Tokyo intervention and more like traders repricing Bank of Japan rate hikes before payrolls. Fawad Razaqzada, StoneX Media Market Analyst, walks through what actually drove the yen higher and what the U.S. jobs report puts at stake. Speculation about yen intervention followed a sudden drop in dollar yen, yet the selling that came after was smooth and steady rather than sharp and disorderly. Markets now carry far more Bank of Japan tightening for this year than before the late July episode. A reverse carry trade sits behind it, alongside a dollar slipping against the euro, the Australian dollar, and gold.
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