Payrolls & intervention chatter shuffle the currency deck again

While the US dollar has dropped back in the wake of today’s non-farm payrolls report, continuing its recent struggles, two other trends in currency markets are showing some signs of exhaustion. Most notably, the Chinese authorities have stepped up their defence of the renminbi, which has stabilised (at least for now). And the yen has rebounded while many of the high carry currencies have fallen back. That may be a sign of things to come.