US dollar gives it back
This is the second day of choppy trade and whipsaws in the FX space. Yields and the US dollar initially rose on rising wages in the CPI report but both reversed soon afterwards.
One of the things at work is a big bid in long-dated Treasuries ahead of today’s bond auction.
USD/JPY topped out fractionally above yesterday’s fresh cycle high and has now retreated below the Asian low, carving out a short-term double top with a target at 113.00.