- Analytics
- News and Tools
- Market News
- USD/JPY: Local factors should support the Yen later in the year – HSBC
USD/JPY: Local factors should support the Yen later in the year – HSBC
The JPY is back as the “safe haven” of choice, as recent “risk off” periods have been associated with falling US yields. If banking-related anxiety does not intensify, this would point to a weaker JPY over the near term, but economists at HSBC believe local factors should provide support for the JPY later in the year.
Near-term sideways, but longer-term strength
“If banking-related anxiety does not intensify, this would point to a weaker JPY against ‘risk on’ currencies over the near term. However, it may be possible for local news to get some traction in the JPY. If the news flow on Japanese wages remains favourable, then this could counter some JPY downside. As such, we expect USD/JPY to move largely sideways in the weeks ahead.”
“Beyond the near-term movements, the rationale supporting the JPY’s appreciation later in the year remains intact. For example, compared to early January, more Japan economists now think that the Bank of Japan (BoJ) will modify its yield curve control (YCC) policy this year. Japan’s trade deficit widened to a record level in January 2023, but this was likely exacerbated by holiday-related distortions and a lagged pass-through of lower oil prices. Subsequent numbers should be better.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
