J.P. Morgan Sales & Trading highlights a bullish outlook for the USD supported by resilient US data and Middle East tensions, while JPY faces potential intervention at the 160.00 level. Economic weakness in Australia and Canada continues to weigh on their respective currencies.
Key Takeaways
- 1.The USD outlook is increasingly positive due to solid US economic data contrasted with weakening global trends in Australia, Canada, and Europe.
- 2.USD/JPY has reached the 160.00 level, entering 'MoF-testing mode' where Japanese authorities may intervene if the pair moves toward 160.50–162.00.
- 3.Geopolitical tensions in the Middle East, including strikes on Iranian territory, are driving Brent crude prices higher and supporting the Norwegian Krone (NOK).
Table of Contents
- G10 FX
- JPY
- AUD
- CAD
- Country Specific Disclosures
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Authors
Laoise Ni Thighearnaigh
Securities
USDUSDJPYBrent CrudeAUDNZD
Themes
USD ExceptionalismCentral Bank Intervention RiskGeopolitical Energy Risk
Regions
North AmericaEuropeAsia PacificUnited StatesJapanAustralia