Quick Take
As Bitcoin records a year-to-date high of $35,000, turmoil stirs in traditional currencies.
The Japanese Yen has breached the 150 threshold, a level identified by some as critical for the Bank of Japan (BOJ) to shore up the Yen.
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Paradoxically, repeated attempts to stabilize the Yen could have further implications, forcing the BOJ into a precarious position of selling U.S. bonds.
This action could inadvertently surge U.S. yields, already at a 5% high for the U.S. 10-year bonds.
With the BOJ’s interest rate decision looming at the end of October, the world is watching. The rate, standing at -0.1% since 2016, could have profound implications for the Yen Carry Trade if increased.
In the meantime, the GBP has hit a low of 1.20 against the dollar, surrendering all gains from this year, and the Euro is wrestling with a 1.05 rate against the dollar. As the market braces for the Euro’s interest rate decision expected later today, a pause could thrust the currency to parity against the dollar.
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