The Japanese Yen (JPY) has risen a 0.1% marginal against the US dollar (USD) while market participants moderate their response to the advertisement of a commercial agreement between the US and Japan in the midst of the uncertainty surrounding the political future of Prime Minister Ishiba, they inform the main currency strategies of Scotiabank, Shaun Oricne and Eric Theoret.
Performance differentials offer support
“The rumors about the renunciation of the prime minister have been denied, but the risk is still great for market participants after the elections of the upper house of this weekend. USA will impose a 15% tariff to US imports from Japan, and it is said that Japan has relaxed its security requirements to allow more imports of US vehicles.”
“Fundamentally, performance differentials are reducing considerably in response to an increase in Japanese yields, reflecting the market expectations of a renewed hardening by a strengthened box. The BOJ had paused its hardening cycle in response to commercial and electoral uncertainty and is now free to continue normalization.”
“For the USD/JPY, we wait for a continuation of the fall to the lower end of the recent range of 142-148.50.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
