What a day this is turning out to be.
USD/JPY is now down 436 pips or 3% to 141.90. It’s the lowest since Japan’s Ministry of Finance first intervened.
The latest leg of market moves comes with stock markets absolutely sizzling. The S&P 500 is up 4.2% and the Nasdaq up 5.7% (!).
These are the largest moves since April 2020 and underscore how desperate this market is for a Fed pivot.
Remember, US dollar longs are an extremely crowded trade so this is a rush to the exits. The stock market has also been severely beaten down so a relief rally can really run, though these numbers are incredible already.