Japanese Yen (JPY) is entering Thursday’s NA session with an impressive 0.8% gain, outperforming most of the G10 currencies on the back of mild risk aversion, Scotiabank's Chief FX Strategist Shaun Osborne notes.
US specifically highlights FX
"Wednesday’s comments from US Treasury Secretary Bessent suggested that the US wouldn’t be seeking a specific exchange rate target in its negotiations with Japan. The comments imply a desire for JPY strength (USD weakness) as the US administration seeks to unwind the dollar’s deemed ‘overvaluation’ resulting from its reserve currency status."
"We remain bullish JPY from a longer-term perspective, targeting a decline in USD/JPY (JPY strength) toward the 125-130 area. A reminder that the next BoJ policy decision is scheduled for May 1 and that it remains one of the few G10 central banks to maintain a hawkish stance and a bias toward further rate hikes."
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