US FX WRAP: DXY rally continues in preferred haven bid; USD/JPYJPY again little changed

USD continued its broad-based strength against major peers, advancing the most against CHF, the Antipodeans and the Euro. Long-end yields advanced again, helping the Buck, while short-end yields traded lower in response to softer-than-expected headline PPI M/M and Y/Y figures (core was in line). In equities, losses were led by tech, as the recent NVDA turmoil continues to weigh while the CEO search gets underway.

Geopolitical updates were few, leaving the focus on Fed speak. Most notably, 2027 voter Goolsbee said the Fed is not currently on a credible path back to 2% inflation, and 2028 voter Collins said additional policy tightening is required soon. DXY has gained for the fourth day this week and for three consecutive weeks, trading at a new YTD high of 103.42.

JPY was little changed against USD on net, despite sharp, volatile moves that fuelled persistent rate-check speculation.