📉 Yen Weakens Slightly as September Rate Cut Bets Grow

📉 Yen Weakens Slightly as September Rate Cut Bets Grow
Equities Stay Firm, but FX Gains Stall

📰 Overall Market Flow

After the U.S. CPI release, markets have nearly priced in a 25bp rate cut at the September FOMC.

• Equities: U.S. stocks remain firm, with Japan’s Nikkei hitting fresh record highs for consecutive days.

• Trade Relations: Japan secured U.S. agreement to modify the trade deal, adding to market confidence.

💱 FX Market Developments

Risk sentiment supported mild yen weakness, but the pace lagged behind equities.

• USD/JPY: Momentum above ¥150 has stalled.

• GBP/JPY: Briefly tested ¥200 on jobs optimism, but gains capped.

📊 Key Points for Overseas Markets

• Whether the equity- and yen-weakness trend continues will hinge on U.S. stock performance.

• U.S. equity futures are slightly lower, hinting at possible short-term correction.

• No major data releases today — a “data vacuum” ahead of Thursday’s U.S. PPI and Friday’s retail sales.

🗣 Fed & Treasury Comments

• Fed Speakers: Barkin (Richmond), Goolsbee (Chicago), Bostic (Atlanta)

• U.S. Treasury Secretary Bessent: Advocated a 50bp cut in September — could further strengthen dovish sentiment.

💵 U.S. Dollar Index (DXY)

• Hit 98.130 late Tokyo morning, then weakened as U.S. yields fell.

• London morning low at 97.662 — lowest since July 28.

• Both the 10-day (98.577) and 21-day (98.390) moving averages remain above current levels.

📌 Currency Outlook (Short- to Medium-Term)