Japanese Yen (JPY) is weak, down 0.5% against the US Dollar (USD) and underperforming all the G10 currencies on the back of weaker than expected industrial production and retail sales data, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
JPY is underperforming ahead of BoJ tonight
“Both contracted in March, and to a much greater extent than expected. The data are unlikely to impact the BoJ policy decision, given that market participants are widely expecting a hold at 0.50%.”
“The BoJ’s release of fresh forecasts will be important, given that it will be one of the first major central banks to provide a reassessment of its forecast in the aftermath of the US tariff announcement. Japan/ US trade talks are resuming Wednesday and set to continue through the end of the week, representing the second round of talks since negotiations began.”