The yen is slightly weaker as yields hold firmer
Treasury yields are a little firmer on the day (10-year yields up 1.9 bps to 1.574%) and that is keeping yen pairs underpinned ahead of European trading. The dollar is also faring slightly better after a bit of a weaker performance overnight.
Trading ranges remain narrow for the most part with EUR/USD headlining that amid a 14 pips range only. Meanwhile, the loonie is a tad firmer amid higher oil prices after a bigger drawdown seen in private oil inventories in the early morning.
Looking ahead, the risk mood will be a key factor to watch but the back and forth action in bonds this week just shows that markets are indecisive awaiting for potential fresh remarks by the Fed at Jackson Hole later this week.
In the mean time, be wary of trade and Brexit developments as that will likely offer near-term gyrations as we count down to Jackson Hole.
