JPY outperforming as haven demand returns following hiatus – Scotiabank

FXStreet Insights Team FXStreet

The Japanese Yen (JPY) is up a modest 0.2% against the US Dollar (USD) but outperforming all of the G10 currencies in classic risk off trade, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

JPY’s fundamentals remain solid

"The return of haven-driven demand is a welcome change for the JPY, given that recent bond market turbulence, trade policy uncertainty and domestic political developments appeared to have dampened the yen’s allure as a safe harbor."

"The JPY’s fundamentals remain solid as the outlook for relative central bank policy favors yen strength on the back of the BoJ’s renewed hawkishness. This week’s hawkish hold has paved the way for medium-term gains as market participants look to a September/October hike."

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 hovers around 1.3400 following BoE decision

GBP/USD holds the bounce above 1.3350 in the European session on Thursday. The Bank of England decided to maintain the benchmark rate unchanged at 3.75%. The MPC voted 6-3 in favor of keeping rates on hold, with the 3 dissenters favoring a rate hike.

EUR/USD nears 1.1500 after upbeat German, EU GDP data

EUR/USD recovered its bullish poise in the European session on Thursday, helped by the better-than-expected German and Eurozone GDP data and renewed US Dollar weakness. Traders now brace for preliminary readings of the second-quarter GDP from the US.

Gold stable below $4,100 as USD resumes decline

Gold hovers around its daily open ahead of the U.S. open on Thursday, trimming early losses. The Greenback enjoyed some near-term demand following Wednesday's post-FOMC downfall, but was unable to retain its gains. Market players now waiting for US Q2 GDP.

Mixed signals leave XRP and XLM at crossroads

Ripple and Stellar are trading at critical technical levels on Thursday. XRP has stabilized above the psychological $1.00 support, while XLM is testing support at $0.173. Traders should be cautious as mixed derivatives metrics keep the outlook uncertain for both altcoins. Derivatives data shows mixed sentiment among traders. CoinGlass’ long-to-short ratio for XRP reads 1.02 on Thursday.

US GDP expected to grow at 2.1% in Q2, unshaken by Iran conflict

The United States (US) Bureau of Economic Analysis (BEA) is set to publish its preliminary estimate of second-quarter Gross Domestic Product (GDP) on Thursday, with analysts expecting the data to show annualised growth at a solid 2.1%, a modest cooling from the 2.1% expansion recorded in the previous quarter.

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.