ECB President Lagarde said an increase in AI activity is visible in investment and exports.

ECB President Lagarde said AI's substantial financing needs are a key driver.

Barclays said the yen’s recent rally could reverse and USD/JPY may move back above 150 if expectations for faster BOJ tightening disappoint and Japanese pension funds fail to shift into domestic assets as anticipated. Barclays strategists led by Shinichiro Kadota said recent yen strength was driven by bets on BOJ policy tightening, speculation over pension fund flows and technicals. The bank warned further yen gains may require the BOJ to deliver a hawkish surprise relative to already elevated expectations. Barclays added that interest-rate differentials, a Japanese equity risk premium, concerns about Sanae Takaichi’s policy stance and persistent structural yen-selling flows remain headwinds to sustained appreciation.