Danske Bank Analysts See USD / JPY in 102 in a month, in 101 in three months, in 100 in six and in 100 in a year. They note that the US dollar has faced strong headwinds due to declining global risks, rising US inflation expectations and increased global growth.
Key statements:
“We have witnessed an Asian outperformance theme given the region’s rapid recovery from the COVID-19 pandemic, relatively favorable Chinese credit growth and, not least, Asian stocks are doing well. For Asia in general, and specifically for countries close to China, the lack of commodity exporters, stable political regimes, high productivity and low debt are a boon for a rebound in FX. “
“We maintain our expectations for further strength in the JPY based on the global theme of widespread USD weakness and a strong regional anchor in CNH. We think we will likely need to see USD / CNH higher for USD / JPY to rise as well. “
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