USD UP WHILE JPY SLIPS

The performance of the USD today has been remarkable as it moves back towards the high levels attained last month. Investors are worried about increases in interest rates as well as geopolitical tensions. At the same time, JPY is moving at levels close to where it was before the Japanese governments intervention about three weeks ago.

The U.S. inflation figures, to be released on October 13 is expected to remain high, plus remarkable labor market data are pointing to higher interest rates until next year. Likewise, it is influencing the USD back towards the high levels reached in September.

Russias attack on cities in Ukraine on October 10 also affected risk appetite. The U.S. CPI and Fed minutes are critical to strengthening hawkish Fed expectations and may offer continuous support to the USD.

At 9:58 am (GMT), the U.S. dollar index was stood at 113.2780 USD, representing a 0.12 percent increase today. It is close to the 20-year high (114.78) reached in September. JPY traded at 145.86 against USD overnight, close to the highest level in 24 years (145.90) attained prior to the intervention of the Japanese government a few weeks ago.