The euro, meanwhile, is holding around $1.1630 before the ECB decision. The next major test comes from US PPI on Thursday and CPI on Friday, which could shift expectations for next week’s Fed meeting.

The yen has strengthened toward 153 per dollar, close to a seven-month high, as BOJ tightening expectations, short covering and possible capital repatriation drive a sharp unwind in carry trades. The move has also followed comments from US Treasury Secretary Scott Bessent warning against shorting the currency.

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