Yen Surges on Reported Japanese Intervention, Sparking Risk-On Rally

North American markets rallied as a reported Japanese FX intervention triggered a sharp yen surge and broad USD weakness, with the S&P 500 hitting a record high up 1.2%. Earlier, USD/JPY broke above 160.00 in Europe but tumbled on intervention warnings and 'rate checks,' compounded by BoE holding rates at 3.75% (June hike odds falling to 48%) and soft Eurozone data (Q1 GDP +0.1% vs +0.2% exp., core CPI at 2.2%). US Q1 GDP missed at +2.0%, reinforcing dollar pressure amid gold climbing to $4,615/oz.