JPY hits lowest since July 2024 on snap election speculation – Scotiabank

FXStreet Insights Team FXStreet

The Japanese Yen (JPY) fell 0.5% against the US Dollar (USD), underperforming all G10 currencies, as speculation over PM Takaichi’s snap election drove renewed selling and pushed USD/JPY toward levels last seen in early 2025, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

USD/JPY eyes 160-162 as market assesses Takaichi plans

"The yen is weak, down 0.5% vs .the USD and underperforming all of the G10 currencies with a clear extension of its latest bearish break and push through levels last seen in early 2025 to reach lows not seen since July 2024. Domestic developments are bearish as market participants assess the resurgence of political uncertainty amid reports of PM Takaichi’s plans to call a snap election."

"The PM’s high approval ratings appear to be motivating this decision as she would seek to strengthen her mandate and secure a single party majority. Takaichi is a fiscal and monetary dove, and Japanese bond yields have surged in response to these latest developments."

"The one-sided nature of the latest selloff in the yen is somewhat concerning and may prompt verbal intervention from the ministry of finance. Japan’s Finance Minister Katayama is said to have already spoken to Treasury Secretary Bessent. For USD/JPY, we now look to the psychologically important 160 level and the July 2024 high just below 162."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

GBP/USD stays firm near 1.3350 amid easing Mideast tensions

GBP/USD builds on Friday's modest bounce from a three-week low and gains strong follow-through positive traction at the start of a new week on Monday. This marks the second straight day of gains, with the major trading near 1.3350 in European trading amid a pause in the Middle East conflict and a broadly weaker US Dollar. Traders brace for the Fed and BoE policy announcements later in the week.

EUR/USD holds gains near 1.1400 as USD slips on Iran diplomacy hopes

EUR/USD holds sizeable gains near the 1.1400 mark in the European session on Monday. The intraday strength is sponsored by a broadly weaker US Dollar, weighed down by renewed optimism over a diplomatic resolution to end a five-month-old US-Iran war.

Gold stands firm on US-Iran diplomacy hopes, reduced Fed hike bets; bulls lack conviction

Gold (XAU/USD) continues with its struggle to capitalize on a modest gap-up opening beyond the $4,100 mark through the early European session on Monday as bulls seem hesitant ahead of the crucial FOMC meeting this week. Heading into the key central bank event, reviving hopes for a diplomatic resolution to end a five-month-old US-Iran war led to a steep fall in crude oil prices.

Bitcoin holds above key support amid ETF inflows, US-Iran bombing pause

Bitcoin (BTC) holds above the key 200-week Simple Moving Average (SMA) around $63,500, having posted four consecutive weeks of gains. Institutional demand shows mild signs of improvement with spot Exchange Traded Funds (ETFs) posting inflows for a third consecutive week.

Bitcoin Price Prediction: BTC holds above key support amid ETF inflows, US-Iran bombing pause

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.