The yen retraces half of its intervention-driven gains on the weekly chart as the crucial 160 level approaches; a September rate hike may be the last line of defense.

(1) Japanese Prime Minister Sanae Takaichi stated that enhancing Japan’s global economic competitiveness will ultimately boost market confidence in the yen. (2) She defended her fiscal policies in response to concerns that the planned tax cuts might weaken support for the yen. (3) During a parliamentary session, she said: "Regarding our proactive and responsible fiscal policy, we believe that enhancing Japan’s global economic competitiveness will ultimately help maintain market confidence in the yen. This means we are taking a consistent policy approach."

JPMorgan has raised Pfizer's target price from $28 to $30.

Pacific Investment Management Company (Pimco) has issued a warning that the world’s most important bond market remains volatile due to high oil prices, inflation concerns, and the US’s massive public debt. The yield on the US 10-year Treasury is at risk of reaching 6% for the first time since 2000. Pimco's Chief Investment Officer, Dan Ivascyn, stated that after several weeks of heavy sell-offs in the $32 trillion US Treasury market, investors such as hedge funds may be forced to close losing bond positions, making a significant further rise in the 10-year Treasury yield from its current level of 5.29% a “possible scenario.” In recent weeks, other investors have issued similar warnings: a “vicious cycle” is forming in the US Treasury market. Successive waves of sell-offs are pushing yields to certain levels, which in turn is prompting other market participants like Real Estate Investment Trusts (REITs) to also sell off bonds.

(1) On Friday, the euro is heading for its fifth consecutive weekly decline. However, as the French bond market stabilizes and falling US Treasury yields temper the dollar’s rally, the sustained selling pressure on the euro is beginning to show signs of easing. (2) On Monday, the euro briefly fell to 1.1161 against the US dollar, hitting a 17-month low before rebounding; this week it remains down 0.1%, with a cumulative loss of over 3% over the past five weeks. (3) Matt Simpson, senior analyst at StoneX in Brisbane, said: "I think the current market move now looks a little overdone. The euro typically only experiences two or three major swings a year, and this is one of those... but the bearish momentum is waning, so trading at current lows should be approached with particular caution." (4) Vishnu Varathan, Head of Asia Pacific Macroeconomics and Strategy at Mizuho Securities, stated that the dollar is currently “in a precarious position of dominance,” with its strength partly owing to the weak performance of both the euro and the yen.