USD/JPY is understandably recovering some lost ground – MUFG
19.07.2023, 10:49

USD/JPY is understandably recovering some lost ground – MUFG

The renewed bounce in USD/JPY was in part triggered by comments from Governor Ueda at the G20 summit in India on Tuesday. Economists at MUFG Bank analyze the pair’s outlook.

Reduced speculation over a YCC change next week

Governor Ueda did acknowledge that market functioning has improved but we already know that and really the decision on changing YCC will at this juncture be more based on the fundamentals rather than the functioning of the markets, although future risks of dysfunctional markets could be part of the decision-making process. 

The market reaction to the Ueda comments suggests reduce speculation over a YCC change next week although we would argue that the forecast update could still provide the justification and for the BoJ changing YCC when yields are not under upward pressure and threatening the 0.50% band limit is a more ideal time than the opposite. 

CPI data on Friday will remain key and the data could prompt renewed speculation once more. But in a backdrop of improved risk appetite and soft-landing optimism, USD/JPY is understandably recovering some lost ground.

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Izvršenje trgovinskih operacija sa finansijskim instrumentima upotrebom marginalne trgovine pruža velike mogućnosti i omogućava investitorima ostvarivanje visokih prihoda. Međutim, takav vid trgovine povezan je sa potencijalno visokim nivoom rizika od gubitka sredstava. Проведение торговых операций на финанcовых рынках c маржинальными финанcовыми инcтрументами открывает широкие возможноcти, и позволяет инвеcторам, готовым пойти на риcк, получать выcокую прибыль, но при этом неcет в cебе потенциально выcокий уровень риcка получения убытков. Iz tog razloga je pre započinjanja trgovine potrebno odlučiti o izboru odgovarajuće investicione strategije, uzimajući u obzir raspoložive resurse.

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