Macro backdrop supports yen recovery, BBH says
BBH's Elias Haddad expects the Bank of Japan to hold its policy rate at 1.00% after a June hike, with inflation below target and markets pricing gradual tightening, favoring a yen rebound against the US dollar.
USDJPY
BBH’s Elias Haddad expects the Bank of Japan to keep its policy rate unchanged at 1.00% following a hike in June, as inflation continues to undershoot the central bank's target.
Markets are pricing only a gradual path of further tightening, which, combined with the global macro backdrop, favors a recovery in the Japanese yen against the US dollar.
The yen has been under pressure but the current environment could provide support for a rebound, according to the note.
Source: FXStreet Forex News