MUFG: Japanese Yen CPI Risks Dominate Against US Dollar
Analysts at MUFG note that recent US Dollar resilience and higher US yields are creating a tougher backdrop for FX carry trades, with Japanese CPI data now in focus.
USDJPY
MUFG analysts Lee Hardman and Abdul-Ahad Lockhart highlight that the Japanese Yen faces key risks from upcoming CPI data against the US Dollar. They observe that recent USD strength and rising US bond yields have made the environment more challenging for FX carry trades.
Commodity-linked currencies are also mentioned as being affected by the current backdrop, though the primary focus remains on how Japanese inflation figures could influence USDJPY direction.
Source: FXStreet Forex News