The selloff in Japanese yen extended yesterday sending the currency to the lowest levels since 1986 against the US dollar and to the lowest levels against the euro. A direct FX intervention is expected at any time. Elsewhere, the euro remains under the pressure of French political shenanigans and Cable clears important technical supports as the Australian dollar is among rare major currencies that challenge the dollar’s strength, after the Australian inflation hit 4% in May. One thing that could derail the US dollar’s positive trajectory this week is economic data. Due today, the US will reveal its latest GDP update, and tomorrow we will have a look at the core PCE – the Federal Reserve’s (Fed) favourite gauge of inflation. In equities and bonds, the US 2-year yield was slightly higher yesterday, the 5 and 10-year yields rose to the highest levels in two weeks despite a good 5-year bond auction as the rising Japanese yields rose anxiety among bond investors, but not among stock buyers. The S&P500 and Nasdaq closed slightly higher on Wednesday thanks to a late rally, as Amazon hit a record high. Listen to find out more!