The Japanese Yen (JPY) is trading flat against the US Dollar (USD) and underperforming all of the G10 currencies in an environment of sentiment-driven USD weakness, Scotiabank’s Chief FX Strategists Shaun Osborne and Eric Theoret report.
JPY is a relative underperformer in pro risk trade
“The JPY’s relative performance is understandable in a risk-on environment, reflecting the yen’s risk profile as a safe haven currency. Fundamental releases have been limited to the release of second-tier PPI, which came in slightly stronger than expected at 2.7% y/y.”
“Its translation into implications for the BoJ have been somewhat muddled by lingering and renewed concerns about newly arrived PM Takaichi’s efforts at influencing the outlook for BoJ policy.”
Read the full article here