JPY advances on narrowing yield spreads to 2022 Lows – Scotiabank
|The Japanese Yen (JPY) is strengthening again, up 0.3% against the US Dollar (USD) as USD/JPY moves back toward Monday’s lows and threatens a broader retracement of its mid-November weakness, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
Markets hold steady on BoJ path with 25bp hike priced by March
"The yen is up 0.3% vs. the USD and a mid-performer among the G10 currencies as it pushes back toward Monday’s highs (USDJPY lows) and threatens a more meaningful retracement of the weakness observed since mid-November."
"The outlook for relative central bank policy remains supportive and yield spreads are narrowing to fresh multi-year lows at levels last seen in 2022."
"Domestic rate expectations are little changed with markets pricing 20bpts of tightening for December and a full 25bpt hike by March. There are no major domestic releases scheduled through the end of the weak, leaving the focus squarely centered on broader developments."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.