Explore the world.

Assess underlying market conditions and fundamentals in the world's major economies.

World
Global
Americas
United States
Canada
Mexico
Europe
Euro Area
United Kingdom
Asia Pacific
China
Japan
Australia

Stay ahead.

Follow the biggest stories in markets and economics in real time.

Analysis
Blog
Views
Calendar

Subscribe

Get insight into the latest trends and developments in global currency markets with breaking news updates and research reports delivered right to your inbox.

After signing up, you will receive regular newsletters from Corpay, and may unsubscribe at any time. View Corpay’s Privacy Policy

JPY

19 Dec 2023

Santa rally continues

• Positive vibes. US equities posted another gain with the seasonal rally in full swing. Backdrop supported the AUD which touched its highest level since July.• USD softer. USD lost ground with the lift in USD/JPY on the back of a ‘dovish’ BoJ an exception. JPY underperformed with AUD/JPY up ~1.6% over the past 24hrs.• US inflation. PCE deflator (Fed’s preferred inflation gauge) due at the end of the week. A deceleration could reinforce rate cut pricing, weighing on the USD. The positive run across risk assets continued overnight. US equities posted another gain with the S&P500 (+0.6%) within striking...

Read More Read More
18 Dec 2023

BoJ in focus

• Holiday vibes. Quiet start to the week. US equities & bond yields a little higher. AUD continues to track near the top-end of its multi-month range.• Fed rhetoric. More Fed members tried to push back on rate cut pricing. PCE deflator (the Fed’s preferred inflation gauge) due at the end of this week.• Macro events. RBA minutes are due & the BoJ hands down its decision. No change expected, but there is a chance the BoJ lays the platform for future moves. It has been a quiet start to the final week before Christmas across markets. In contrast to...

Read More Read More
17 Dec 2023

Will the BoJ jolt markets?

• Mixed markets. Equities consolidated, long end yields dipped. USD clawed back ground against EUR & GBP. AUD hovering near the top of its range.• Fed push back. NY Fed Pres. Williams tried to curb the rate cut enthusiasm. But the die has been cast. Markets looking to price in the easing cycle.• Event radar. Locally, the minutes of the RBA meeting are due. Offshore, the US PCE deflator is released & the Bank of Japan meets. It was a mixed end to last week for markets. Macro-wise China’s November activity data was generally better than anticipated. Helped by stimulus...

Read More Read More
15 Dec 2023

The Bank of Japan is playing aggressive catch up.

In our opinion, relative interest rate differentials should continue to shift incrementally in the yen’s favour over the next year. While central banks appear set to maintain restrictive policy settings to ensure inflation is tamed, we doubt further interest rate hikes will be delivered. Indeed, with central banks evolving toward a more data-dependent and risk management-focused approach as growth slows, labour markets loosen, and inflation moderates, expectations about the next easing cycle should intensify. This is likely to see bond yields outside of Japan decline as in past cycles, when rates have fallen once it became clear the monetary tightening...

Read More Read More
15 Dec 2023

Policymakers could hold the line.

A more bearish backdrop for the yen might unfold if the Bank of Japan holds firm, ignoring elevated inflation and indications that price growth could persist. In this scenario, wide interest rate differentials should continue to depress the yen: especially if risk sentiment remains buoyant, inflation cools, and global growth slows whilst avoiding more sinister outcomes. USDJPY and Japan Trade Weighted Index

Read More Read More

About

Contact

Data and information on this website is provided “as is” and for informational purposes only. Information on the website does not bind Corpay in any way; nor is it not intended as advice, a recommendation or an offer or solicitation for the purchase or sale of any financial products. Data and other information are not warranted as to completeness or accuracy and are subject to change without notice. All charts or graphs are from publicly available sources, or our proprietary data. Nothing in this material should be construed as investment, financial, tax, legal, accounting, regulatory or other advice or as creating a fiduciary relationship. Corpay disclaims any responsibility or liability to the fullest extent permitted by applicable law, for any loss or damage arising from any reliance on our use of the data in any way. You should contact your Corpay sales representative for clarification on the range of financial instruments available in your jurisdiction. Copyright Cambridge Mercantile Corp. 2022.