Credit Agricole CIB FX Strategy Research notes that themain focus for JPY traders this week with will be on Japan’s inflation print and the FOMC July meeting.
“At 0.4% (prev. 0.4%) CPI inflation is expected to have remained unchanged in June. Even if this week’s data were to surprise higher there will be only a limited impact on monetary policy expectations and the currency.
Considering there is limited scope for the Fed to surprise on the hawkish side this week, we expect investors’ appetite for risk assets to remain supported. This is in line with our FX Risk Index analysis, according to which risk aversion remains close to multi-month lows,” CACAIb argues.
As a result of this, we expect the JPY to remain subject to downside risks, against the AUD and EUR.
In line with this view, CACAIB stays long EUR/JPY via options (see here).
Source: Credit Agricole CIB Research
The article is published by one of the foremost sources of Forex trading information. Link to the original article above.
from Online Forex Trading Resource
View thesource article here