- Analytics
- News and Tools
- Market News
- USD/JPY should be trading closer to 144.50 – Scotiabank
USD/JPY should be trading closer to 144.50 – Scotiabank
USD picks up a little support. Economists at Scotiabank analyze USD/JPY outlook.
Narrower US-Japan interest rate differentials are not having any major impact on USD/JPY
It is notable that lower US yields/narrower US-Japan interest rate differentials are not having any major impact on USD/JPY. The US/Japan 10Y spread has fallen around 50 bps over the past three weeks to reach levels last seen in August when USD/JPY was trading nearer 145.
Spot is knocking on the door of recent highs but Fair Value based on spreads, equity returns and terms of trade (weaker crude oil prices are helping boost Japan’s still soft terms of trade) suggest the USD is quite significantly overvalued and should be trading closer to 144.50.
© 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
