JPY flat w/ overnight recovery mirroring spreads – Scotiabank
|The Japanese Yen (JPY) is entering Wednesday’s NA session unchanged against the US Dollar (USD) with an impressive recovery from overnight losses that seemed to primarily reflect movement in the US Treasury market, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.
Overnight recovery offers stabilization
"Yield spreads appear to be rolling over and narrowing in a JPY-supportive manner, following their recent widening through a period that also included the announcement of US tariff hikes from August 1. USD/JPY continues to trade in a flat range roughly bound between 142.50 support and 148.00 resistance."
"In terms of data, we look to the PPI release scheduled for 7:50pm ET. Lastly, we note that BoJ board member Koeda has hinted to the possibility of an upward revision to the central bank’s inflation forecast at the next meeting on July 31. Recent communications have been cautiously hawkish, given bond market turbulence and trade policy uncertainty."
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.