Forex
Global Liquidity Shift: Yen and Dollar Strengthen Across Multiple Currency Pairs
The global liquidity regime may be shifting, according to recent market developments.
The Japanese yen and US dollar have strengthened across multiple currency pairs, with the yen remaining relatively steady against the dollar. This could indicate that Japan and the US are seeing rising interest rates, prompting capital repatriation and reducing foreign debt appeal for Japanese investors.
US 2-year rates outpacing peers are driving dollar strength, widening spreads suggesting further weakness for currencies like the Swiss franc and euro.