A weak growth environment and a clear drop in bond yields should boost the Japanese yen. For this reason, ING economists expect USD/JPY to fall below 130 by the end of 2023.
Still too early to expect CNY to lead Asian currencies substantially higher
“Although it is tempting to argue that some already weakened European or Asian currencies will receive a reassessment next year, we believe that such a conclusion is certainly premature.”
“European currencies will face a German economy reorienting towards a new world order, while it also seems too early to expect the Chinese Renminbi to lead the Asian currency complex substantially higher. Instead, a weak growth environment and a clear drop in bond yields should see safe-haven currencies like the Japanese yen start to outperform.”
“We could see USD/JPY trading well below 130 by the end of 2023.”
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.
