Yen's Summer Slump Sparks Global Market Fears

The markets are not taking a summer break as there's still plenty of market news to watch. One key area to monitor is the Japanese yen, which has been languishing at four-decade lows due to energy shocks.

U.S.-Japanese intervention may be on the cards again to support the yen, and this could include a rate hike by Japan's central bank in September. However, FX traders are still unsure about what policymakers will signal next.

The U.S. Treasury Secretary's 'to-do' list mentioned purchases of yen, but it also included euros rather than dollars in the intervention. This has sparked debate over whether the U.S. wants to avoid worsening bond market strains by foreign central banks selling Treasuries to fund currency-support operations.