USD/JPY climbs all the way back
Maybe a tax cut isn’t so bad after all.
It’s tough to tell if the market is handicapping whether the tax cut is as good for growth as expected (it probably is) or whether it can pass (tougher to say).
In any case, we’re back to neutral.
After falling to 113.54, USD/JPY is all the way back to 114.16, which is slightly higher than before the tax plan began to circulate.
As for what’s next, I’m watching 10-year yields. They’re still down 2 bps to 2.35% and 2.40% is the key level.