USD/JPY to march forward to 112.50 in the second quarter – Credit Suisse

FXStreet Team FXStreet

Strategists at Credit Suisse look for more USD strength in the second quarter. Their expected USD/JPY range is 107-114 and they are buyers on dips to the lower end.

Covid policy not a source of JPY support any more

“Japan is among the global vaccination laggards even as domestic media fret about the risk of a local ‘fourth wave’, suggesting covid risks are now potentially a JPY negative. This, together with wider rate differentials, prompts us to look for further JPY weakness in Q2 if global markets stay robust, with a USD/JPY 112.50 target.”

“Depressed inflation means changes to monetary policy announced at the 18-19 March Bank of Japan’s meeting did not shift this sentiment, as the central bank remains committed to purchasing more Topix ETFs (up to JPY12 trn annually) and unlimited amounts of JGBs as needed.”

Author

FXStreet Team

FXStreet

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.