The newest from Deutsche Financial institution on the Financial institution of Japan and JPY. Analysts on the financial institution should not anticipating a lot of a rally for the yen.
They are saying that they see little cause for the Financial institution of Japan to tighten its financial coverage aggressively and as such little tailwind for the JPY on this entrance. It will want a extra assertive charge hike cycle to immediate an unwind of the yen carry commerce.
DB add that on the opposite facet of the ledger, the yen is unlikely to rise a lot with no US recession (and consequently decrease charges within the US).
