JPY: It’s getting interesting – ING
|USD/JPY has been the surprise package this week, retracing down to the 155/156 area seen in early June, ING’s FX strategist Francesco Pesole suggests.
Undervalued Yen pressures the US manufacturing sector
“Lower short-dated US rates have clearly been a big driver of the move, but politics has been playing a role here too. Donald Trump's Bloomberg interview highlighted the undervalued Yen (JPY) pressuring the US manufacturing sector.”
“And in Tokyo, political calls are growing louder that a weak Yen has passed its sell-by date. Investors' short Yen for the carry trade also have to deal with more opportunist Japanese FX intervention.”
“Ultimately, we think the US macro/rates story will dominate and should lead USD/JPY lower later this year. We currently have a 153 end-year forecast here.”
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.