The Japanese Yen Drops As the USD Regains Strength

Jpy

The Japanese Yen is slightly weaker so far today despite GDP there narrowly beating forecasts. Annualized GDP was -.08% for the third quarter instead of -1.1% anticipated.

Treasury yields have added a couple of basis points so far today after dipping around a dozen bps across the curve yesterday. The 2s 10s at a 40-year record inversion of -0.84%

A soft lead from Wall Street saw APAC equities go south with except for Hong Kong and mainland China. There are more reports today that China will back down from its highly restrictive zero-case Covid-19 policy.

The US Dollar is broadly stronger through the Asian session after sliding in North American trade. Fears of a recession in the US continue to swirl after commentary this week from several senior financial executives sounding the alarm for an economic slowdown in 2023.

The coordinated nature of their remarks appears to have added weight to their perspective.

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