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

FXStreetSep 30, 2026 8:33 AM

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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.

Dollar strength and Yen vulnerability

"FX markets were also caught on the hop if expecting a weaker USD, as is so often the case, with a notable exception with huge implications for other markets."

"EUR/USD is around -1.1% q-o-q and GBP/USD had an unexciting Q3 while the DXY is slightly up right now."

"However, there was huge action in USD/JPY in the opposite direction that may carry through to the Yen Carry Trade if it carries on."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)

Disclaimer: The information provided on this website is for educational and informational purposes only and should not be considered financial or investment advice.

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