The MUFG FX Daily Snapshot highlights continued Yen weakness due to rising oil prices and a loose BoJ stance, alongside Sterling volatility driven by UK political uncertainty.
Key Takeaways
- 1.The Japanese Yen remains vulnerable as external factors like rising crude oil prices and higher US inflation work against MoF intervention efforts.
- 2.The JGB market is underperforming and bond yield spreads are widening sharply because the Bank of Japan's monetary stance is seen as inappropriately loose.
- 3.The British Pound is being pressured by internal Labour Party leadership instability and a potential by-election move by Andy Burnham.
Table of Contents
- JPY: Middle East and crude oil not favouring yen stability
- GBP & EUR: UK politics hits pound as rates in Europe drop
- KEY RELEASES AND EVENTS
- CERTIFICATION
- LEGAL ENTITIES AND BRANCHES
- GENERAL DISCLAIMERS
- COUNTRY AND REGION SPECIFIC DISCLAIMERS
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Authors
Derek Halpenny
Securities
USDJPYJGBDXYCrude Oil
Themes
Central Bank Policy DivergencePolitical Risk and Currency MarketsEnergy Driven Inflation
Regions
Asia PacificEuropeUKJapanUnited KingdomUnited States