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."

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