Japan Finance Ministry Cuts USD/JPY 100 Pips to 161.56 With Stealth Intervention

1 articles · Updated · investinglive.com · Jul 2

USD/JPY fell 100 pips to 161.56 after Japan's Finance Ministry shifted to stealth intervention instead of telegraphing action with escalating verbal warnings.
That move came ahead of Thursday's U.S. non-farm payrolls report, where average hourly earnings are forecast to rise 0.3% month on month and 3.5% year on year.
A strong jobs or wage reading could still lift the dollar by pushing front-end Treasury yields higher; Fed funds futures currently price a 30% chance of a July hike and 36 basis points of tightening by year-end.
Markets have largely discounted a weak payrolls print after the prior three gains of 214,000, 179,000 and 172,000 jobs, while some traders also see temporary World Cup hiring distorting the headline.

Sources

Job growth has stalled while wages remain stubbornly high. Is the US economy headed for a 1970s-style stagflation crisis?

Japan has unleashed 'stealth intervention' to save the yen. Can this new tactic win against powerful market forces?

With jobs slowing but AI-fueled inflation rising, are central banks fighting the wrong battle?

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