JPY underperforming G10 – Scotiabank

The Japanese Yen (JPY) is weak, down 0.3% against the US Dollar (USD) and underperforming all of the G10 currencies into Thursday’s NA session, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

This week’s movement ignoring narrower, JPY-supportive spreads

"The preliminary PMI’s were mixed, with a modest improvement in the (still contractionary) manufacturing reading and a slight moderation in the (barely expansionary) services print. CPI data will be the highlight of the week and the release is scheduled for 7:30pm ET."

"Narrowing USJapan spreads remain supportive for the yen, reflecting renewed confidence in BoJ tightening and a continued rise in Japanese yields with the 20Y following the 10Y’s lead in breaking to fresh multi-decade highs."