Yen Surges as Oil Prices Slide Amid Ongoing Bond Market Concerns
The European session saw significant movements in various markets, driven by key events and announcements. The Japanese yen surged, with USD/JPY falling below 158.00 to 157.60 levels, following comments from Japan's finance minister Katayama that the principles behind July's joint intervention remain in place. Additionally, Prime Minister Takaichi revealed that US President Trump had told her that a weaker yen is putting pressure on US trade.
Oil prices also declined, with WTI crude oil down 2.4% to $92.36, due to reports of a potential phased US-Iran deal that could lead to a reopening of the Strait of Hormuz. The bond market continues to be a concern, with 10-year Treasury yields nudging up to 5.17%, despite falling short of yesterday's high of 5.22%.
European indices showed improvement, with stocks eyeing a bounce to close out the week, while US futures pointed to a more positive open, driven by tech shares. However, the risk mood remains fragile, and fresh selling pressures could easily bite before the end of the week.