The preliminary improvement of the worldwide investor's risk views helped last week the yen to decrease with another traditional secure shelter in Switzerland. As a result, the USD/JPY will rise back to 144.00 after it fell briefly at 140.00 at the beginning of last week. The weaker yen and the healing risk name have helped to completely reverse the loss of the Japanese Topix equity index (~ 15%), Mufg FX analyst Lee Hardman notes.
Yen is weakening from the risk of improving the risk
“This week's main event is BOJ's last political meeting. This is the first political update after President Trump's” Liberation Day “tariff announcement. Boj must take into account the negative impact of trade disorders when they set monetary policy for the upcoming week. Simple that it is simple that it is simple if it's simple, if easy, if easy, if simple, if simple, it is not easy to make it easy and other overseas.
“A significant surprise of the April Tokyo CPI report was supportive in Japan's normalization of further policy. However, trade disorders will further hinder BOJ in the near future. A quick trade agreement to reverse the US and Japanese tariff tariffs can give BOJ more confidence to reach out. to September to December. “
“In general, developments do not change our opinion that JPY is likely to strengthen besides further slowing global growth, encouraging other major central banks, including FEDI, offering deeper interest rates cuts that continue to yield differences with Japan. Boe, ECB and Fed's recent weeks have all indicated that they are ready to lower.
