Non-dollar FX broadly higher; GBP/USD gained roughly 50 pips intra-session, USD/JPY slid about 60 pips, EUR/USD climbed about 40 pips.

A private member of Japan’s Council on Economic and Fiscal Policy said the Bank of Japan should continue raising rates at a moderate pace, ideally every six months, to correct excessive yen depreciation. He said that pace would not harm domestic investment and expects the BOJ to hike at year-end, again in summer next year, then pause. He added he personally regards a June hike as appropriate, warning that delaying would risk further yen weakness and hurt households.

US job growth slowed in June, sending Treasury yields and the dollar lower. The BLS reported nonfarm payrolls +57k in June versus a Wall Street Journal consensus of 115k; May and April payrolls were revised down to 129k (from 172k) and 148k (from 179k). The unemployment rate edged down to 4.2% from 4.3%. Initial jobless claims fell slightly to 215k (from an upwardly revised 216k), below the 220k expected. The dollar index dropped 0.7%. The 10-year Treasury yield fell to 4.461% from 4.505%; the 2-year yield fell to 4.108% from 4.191%. The print runs counter to expectations that Fed tightening would continue to support the dollar.