US FX WRAP: Yen lags, and Pound ekes out gains in thin trade

The Dollar largely eked out slight gains vs. G10 peers, with the GBP outperforming and the Yen the distinct laggard. Headline newsflow was very sparse on Monday, with Fed's Hammack saying that current rate is not meaningfully restricting the economy; would probably need some number of rate hikes, but she has no intention to prejudge the number of rate increases or the final level. In reaction, little move was seen in markets. In terms of the week ahead, the highlight is US CPI on Wednesday.

GBP was the only G10 currency to see gains vs. the Greenback, as desks noticed the continued UK narrative of "no news is good news". CAD, EUR, AUD, NZD, and CHF all saw losses to varying degree, with the Yen the notable loser, as previously mentioned.

On the day, the JPY saw notable intra-day strength as Kyodo citing source reports, said that September rate hike signal from the BoJ resulted in the US joining in on intervention. The report added that the BoJ now has "no choice but to raise interest rates" in September. This followed a hawkish Summary of Opinions overnight. However, the strength swiftly pared, and reverse, to see USD/JPY hit a peak of 159.17 against an earlier low of 157.66. Meanwhile, the Japanese Growth Minister spoke, noting the fiscal situation is improving and they do not expect the JPY depreciation to continue.