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PY risk is elevated and biased to strength - Scotiabank

Analysts at Scotiabank explained that the JPY is outperforming with a 0.6% gain, rising to levels last seen in early July.

Key Quotes:

"JPY risk is elevated and biased to strength as we note the market’s muted response to the official announcement of PM Abe’s long-anticipated fiscal stimulus plan."

"The reaction follow’s last week’s post-BoJ disappointment, shifting the focus back to broader developments following a multi-week period in which domestic risk has driven much of the movement in JPY."

"Yield spreads are suggestive of further JPY strength and risk reversals hint to a rise in demand for protection against upside risk."

 

USD/JPY: testing the 50% retracement of Abe yen sell-off - BBH

Analysts at Brown Brothers Harriman explained that the JPY100.60 area corresponds to a 50% retracement of the Abe-inspired yen sell-off.
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GBP/USD makes fresh highs above 1.3350

GBP/USD gathered renewed momentum and extended to fresh 2-week highs above 1.3300 during the American afternoon, as the dollar trades lower across the
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