The Japanese Yen (JPY) is down 0.2% against the US Dollar (USD) and underperforming all of the G10 currencies with the exception of NOK, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.
Yield spreads are also narrowing in a JPY-supportive manner
"The overnight release of Japan’s national CPI data offered little in terms of price action, with headline coming in at 3.1% y/y, as expected. Core (ex fresh food, energy) was also in line with expectations, at 3.4% y/y."
"Japan’s above target inflation remains a core concern for the BoJ, and rate expectations are firming in response to expectations of renewed tightening this fall. Yield spreads are also narrowing in a JPY-supportive manner, reflecting higher JGB yields."
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