Japanese Yen (JPY) is up a modest 0.2%, outperforming a lot of the G10 currencies in quiet commerce, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
Larger yields supply help to the JPY through spreads
“Bond market developments proceed to dominate the narrative and Japan’s newest weak bond public sale is lifting home Japanese Authorities Bond yields and narrowing spreads in a JPY-supportive method.”
“Home releases have been restricted nonetheless the calendar is heavy into the top of the week with employment, Tokyo CPI, industrial manufacturing, and retail gross sales knowledge. A speech from BoJ Gov. Ueda has been added to the calendar for subsequent week, and will probably be carefully scrutinized for any doable shift in tone heading into the June 17 coverage resolution.”
“The BoJ has remained decidedly hawkish year-to-date and its tightening stance has been met with bond market turbulence in latest weeks.”
