Yen Rally Gaining Further Momentum: 3-Minutes MLIV

Watch on YouTube ↗  |  September 08, 2026 at 08:17  |  3:09  |  Bloomberg Markets
Speakers
Adam Linton — Markets Live Strategist, Bloomberg

Summary

Adam Linton discusses a yen rally breaking below 155, driven by technical stops, carry reallocation and options positioning, and flags US CPI as the next key test. He sees European equities and the DAX as vulnerable due to energy costs, bond yields and earnings risk. He also argues UK gilts will retain a fiscal risk premium, with the Bank of England decision a key focus.

  • Yen breaks below the 155 intervention low with options risk reversals tilted toward yen strength.
  • Strong Japanese data and technical stops through 155 add momentum to the yen move.
  • US CPI on Friday is seen as the next key test for the yen.
  • European equities are viewed as vulnerable after Q2 earnings and higher energy prices.
  • The DAX shows signs of waning alongside German fiscal risk.
  • UK gilts are expected to retain a fiscal risk premium.
  • Bank of England commentary later today could affect rate expectations.
Ideas
Adam Linton Markets Live Strategist, Bloomberg 0:06
Yen rally gaining further momentum
The yen is breaking below the 155 intervention low as carry reallocation, strong Japanese data, technical stops through 155, and short positioning drive the move; options risk reversals are now tilted toward yen strength, with US CPI on Friday a key test.
FXY HIGH
Adam Linton Markets Live Strategist, Bloomberg 1:16
European equities and DAX look vulnerable
European equities look vulnerable after Q2 earnings, with Europe suffering from higher energy prices without a US-style tech offset, rising global bond yields driven by inflation break-evens rather than real growth, and stretched earnings expectations; the DAX shows waning momentum and faces German fiscal risk.
VGK DAX HIGH
Adam Linton Markets Live Strategist, Bloomberg 2:52
UK gilts retain fiscal risk premium
UK gilts will retain a fiscal risk premium because the government has not clearly reconciled its growth push with fiscal discipline and its fiscal headroom has been slashed; Bank of England commentary later today is the next key test.
UKGILT MED
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This Bloomberg Markets video, published September 08, 2026, features Adam Linton discussing FXY, VGK, DAX, UKGILT. 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Adam Linton  · Tickers: FXY, VGK, DAX, UKGILT