JPY: Media report of BoJ equivocation on policy normalization – Scotiabank

FXStreet Insights Team FXStreet

The Japanese Yen (JPY) is weak, down 0.2% against the US Dollar (USD) and underperforming all of the G10 currencies with all other major currency peers showing modest gains (vs. USD), Scotiabank's Chief FX Strategist Shaun Osborne notes.

JPY underperforms on the day

"The JPY’s weakness is being attributed to media reports on deliberations at the BoJ and an apparent lack of a clear consensus on the topic of unconventional (balance sheet) normalization and the pace of tapering for next year."

"The reporting contrasts with BoJ Gov. Ueda’s comments earlier this week in which he offered a more solidly hawkish outlook that included both rate hikes and tapering."

"The BoJ’s next meeting is on June 17 and market participants are expecting no major policy changes while also still expecting policymakers to remain committed to medium-term policy tightening."

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.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.