JPY: Geopolitical panic over, for now - ING

Easing regional geopolitical tensions are taking a toll on the yen at the start of the week, with the currency - along with its safe-haven peer CHF - being the key underperformer in global FX markets, explains the analysis team at ING.

Key Quotes

“From a risk-management perspective, it may be too early to fade the recent move and JPY will remain sensitive to near-term geopolitical developments. Solid US activity data, however, provides another reason for why USD/JPY downside could be limited this week.”

“After 2Q17 Japanese GDP came in much stronger than expected, the domestic data focus turns to the final June industrial production and July trade balance releases (both Wed).”