USD/JPY: Yen carry risks build into Q4 – Rabobank

Rabobank’s Global Daily notes that FX markets were surprised by Dollar strength in Q3, with EUR/USD and GBP/USD relatively subdued while USD/JPY saw “huge action” higher. The report warns this move may spill over into the Yen Carry Trade if it continues. Emerging Market FX is also slipping against the Dollar again, except for CNY, which is treated as a separate case.