In forex, Saxo head of FX strategy John J Hardy reports that the dollar remains stable following a suite of massive US Treasury bond auctions totaling $279 billion. "Demand for Treasuries remained within range despite the massive size of the auctions, so we see a broad lack of concern on the greenback," he notes.
Despite the dollar's strength, USDJPY fell lower Thursday with the yen now trading at some remove from broader market movements. "It feels like the market may be reassessing some its assumptions on the Japanese currency," says Hardy, "adding that in his view the yen remains "quite cheap".
One way to play the strong yen trend is through EURJPY, where prices are currently sitting at the 200-day moving average, with Hardy noting that a break of this level could see a pronounced move lower.
Finally, next week sees a key event for USD and FX in the form of Federal Reserve chair Jerome Powell's address to Congress Wednesday.