USD index (DXY) briefly rose to a one-month high of 101.640.

Citadel Securities expects the Fed to raise rates this week; a Wednesday 25bp hike would bolster Chair Kevin Wash’s credibility in the inflation fight, the firm’s head of macro strategy Frank Flet wrote. The move would signal policymakers no longer rely on pre-signaling every action, could “decisively end the era of forward guidance,” and underscores Fed independence. “Markets may again underestimate the extent of the Fed’s hawkish shift.”

Japan's finance minister Katayama Satsuki said she expects Japanese government bonds to become relatively more attractive to pension funds, but stressed this does not imply she will pursue specific changes, which would breach rules.