JPY has again underperformed - BNZ

Kymberly Martin, Senior Market Strategist at BNZ, takes a note that the ‘safe haven’ JPY has again underperformed as since the US elections, the diverging paths of US and Japanese monetary policy have increasingly been in focus.

Key Quotes

“Equally, US-JP 10-year yield spreads have widened from 180bps to 230bps. These broad themes appear to be driving the current weakening trend in the JPY as opposed to individual data developments. Yesterday’s stronger than expected JP retail sales release passed virtually unnoticed. The USD/JPY has traded up from 111.90 early last evening to 112.80 currently.”