Scotiabank: the yen is in demand amid a slight decrease in risk appetite

The yen continues to be in demand, rising against most G10 currencies amid a moderate drop in risk appetite triggered by the night’s performance of Donald Trump, in which the US president touched on the border wall, the state debt limit and NAFTA’s termination. The dynamics of the yield differentials of US and Japanese bonds support the yen, remaining within the lower limit of the recent range, and option premiums reflect the interest in buying insurance against the further growth of the Japanese currency. The dynamics of the dollar / yen for the near future will determine the tone of Friday’s speeches by the heads of the world Central Bank at the summit in Jackson Hole

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