JPY outperforming on mild risk off – Scotiabank
|Japanese Yen (JPY) is entering Thursday’s NA session with an impressive 0.8% gain, outperforming most of the G10 currencies on the back of mild risk aversion, Scotiabank's Chief FX Strategist Shaun Osborne notes.
US specifically highlights FX
"Wednesday’s comments from US Treasury Secretary Bessent suggested that the US wouldn’t be seeking a specific exchange rate target in its negotiations with Japan. The comments imply a desire for JPY strength (USD weakness) as the US administration seeks to unwind the dollar’s deemed ‘overvaluation’ resulting from its reserve currency status."
"We remain bullish JPY from a longer-term perspective, targeting a decline in USD/JPY (JPY strength) toward the 125-130 area. A reminder that the next BoJ policy decision is scheduled for May 1 and that it remains one of the few G10 central banks to maintain a hawkish stance and a bias toward further rate hikes."
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.