The Japanese Yen (JPY) weakened by 0.5% against the dollar, underperforming even fellow haven currencies, as markets brace for soft domestic data and upcoming US-Japan trade negotiations. With the BoJ expected to hold steady, JPY remains vulnerable to external risks and policy inertia, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
Focus on data, trade, and BoJ
“JPY is weak, down 0.5% vs. the USD and underperforming all of the G10 currencies along with its haven peer CHF. Domestic releases are in focus with industrial production and retail sales scheduled for release after the NA session.”
“Both are expected to show weakness in March, and are therefore unlikely to move the BoJ off the sidelines, given the widely expected hold at this week’s policy meeting. US/ Japan trade negotiations are set to continue between Wednesday and Friday, offering additional headline risk for the yen.”
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