Lofty heights
• Policy divergence. JPY continues to weaken with the BoJ’s stance continuing to diverge from the rest of the world. AUD near a multi-month high.• Fed talk. Chair Powell testifies to Congress this week. Markets still aren’t pricing in the Fed’s views. A shift up could give the USD some support.• China stimulus. More stimulus to support the faltering recovery is anticipated, but we think China may not meet the markets seemingly lofty thinking. US markets had a relatively quiet end to a busy week on Friday. US equities retreated from their 14-month highs (S&P500 -0.4%), while bond yields increased...