MUFG
Institutional, MUFG
Japanese Yen: Intervention risk offsets trade pressure – MUFG
MUFG’s Lee Hardman notes the Japanese Yen (JPY) is trading in a narrow USD/JPY range above 158.00, with intervention risk and a softer US Dollar (USD) capping upside. Bank of Japan (BoJ) officials see underlying inflation near target, with markets pricing a December hike. Rising domestic yields are boosting JGB demand, though a wider trade […]
by Currency Hedger
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- 3 days ago
Institutional, MUFG
British Pound: Resilient but BoE pricing stretched – MUFG
MUFG’s Derek Halpenny highlights the Pound’s resilience, with data-supported expectations of Bank of England tightening keeping GBP steady versus the US Dollar since June. However, rising consumer credit, increasing defaults, survey evidence of household vulnerability, and excessive OIS pricing for 100bps of hikes by next September leave the Pound exposed if UK rates reprice lower. […]
by Currency Hedger
- 0 Comments
- 1 week ago
Institutional, MUFG
Japanese Yen: BoJ’s Koeda reinforces tightening case – MUFG
MUFG’s Michael Wan reports that Bank of Japan (BoJ) Board Member Junko Koeda has strengthened the case for further policy tightening. Koeda emphasized upside price risks, still-accommodative financial conditions and judged the neutral rate to be well above 1%. MUFG sees her remarks as consistent with continued policy normalization, with swaps implying a high probability […]
by Currency Hedger
- 0 Comments
- 1 week ago
Institutional, MUFG
US Dollar: AI-driven reversal after CPI gains – MUFG
MUFG’s Lee Hardman notes the US Dollar has quickly surrendered gains made after the stronger US CPI report, with the Dollar Index retreating from a year-to-date high near 102.95 back towards 102.00. He links the move to an unwind of AI-related trades and risk-off conditions, but stresses that firm inflation data and Fed expectations still […]
by Currency Hedger
- 0 Comments
- 1 week ago
Institutional, MUFG
Japanese Yen: BoJ hawkishness supports JPY against US Dollar – MUFG
Lee Hardman at MUFG highlights that the Japanese Yen has benefited from risk-off trading and hawkish Bank of Japan commentary, pushing USD/JPY back below 158.00. BoJ board member Junko Koeda signalled upside risks to prices and a neutral rate well above 1%, while MUFG still expects no move at the October meeting but another hike […]
by Currency Hedger
- 0 Comments
- 1 week ago
Institutional, MUFG
Indian Rupee: RBI FX steps support INR but raise hedging costs – MUFG
MUFG’s Michael Wan explains that recent RBI FX measures have supported spot Indian Rupee, while temporarily disrupting derivatives liquidity. Offshore INR forward premiums fell sharply after restrictions on non-resident NDF access and higher hedge costs. These actions reduced speculative Dollar demand and helped INR rally, though at the expense of wider bid-ask spreads and less […]
by Currency Hedger
- 0 Comments
- 1 week ago
Institutional, MUFG
Euro: Bearish sentiment persists into year-end against US Dollar – MUFG
MUFG’s Lee Hardman highlights that the Euro (EUR) remains near recent lows around 1.1200 against the Dollar, pressured by fiscal and political concerns in the Euro area, especially France. IMM data show leveraged funds rebuilding short Euro positions. With no clear positive catalyst identified, MUFG warns the Euro remains vulnerable to further weakness heading towards […]
by Currency Hedger
- 0 Comments
- 2 weeks ago
Institutional, MUFG
Chinese Yuan: PBoC stance and valuation debate guide currency path – MUFG
Halpenny highlights a new PBoC document defending China’s FX policy and rejecting claims that CNY drives its trade surplus, instead pointing to manufacturing competitiveness. He notes BIS REER data showing a 20% fall from the 2022 peak and IMF estimates of 12–20% undervaluation, suggesting CNY is undervalued but only partly explains China’s export strength. China […]
by Currency Hedger
- 0 Comments
- 2 weeks ago
Institutional, MUFG
Japanese Yen: BoJ normalisation supports gains against US Dollar – MUFG
MUFG’s Michael Wan highlights that USD/JPY is still trading above 158, but Governor Ueda’s comments point to further Bank of Japan (BoJ) policy normalisation. Ueda stressed anchoring inflation around 2% and noted upside risks from imports, AI demand and JPY weakness. Wan remains constructive on the Japanese Yen, though further gains likely need faster BoJ […]
by Currency Hedger
- 0 Comments
- 2 weeks ago
Institutional, MUFG
Japanese Yen: Pares gains against US Dollar but BoJ outlook supportive – MUFG
MUFG’s Lee Hardman notes that the Japanese Yen has softened after a Bloomberg report on the GPIF’s September meeting, lifting USD/JPY back above 158.00. Despite the correction, the Yen remains the best-performing G10 currency since August, helped by faster Bank of Japan policy normalization and higher JGB yields. Reuters sources suggest the BoJ may signal […]
by Currency Hedger
- 0 Comments
- 3 weeks ago