The Japanese Yen (JPY) is powerful, up 0.6% towards the US Greenback (USD) and outperforming the entire G10 currencies as market contributors reply to this weekend’s higher home election consequence, Scotiabank’s Chief FX Strategists Shaun Osborne and Eric Theoret report.
Japanese markets are closed for vacation
“PM Ishiba’s ruling coalition misplaced its majority however the prime minister has vowed to remain on, providing markets some reassurance as they search to evaluate the implications for Japan’s fiscal outlook. Native markets are closed, leaving Japanese bond yields flat, and yield spreads are narrowing in a JPY-supportive method on account of softer US yields.”
“The choices market is shifting within the yen’s favor and pricing a barely greater premium for defense towards upside threat. For USDJPY, we glance to near-term weak point given indicators of a pullback from the higher finish of the 142-148.50 vary.”
