Investing.com — The yen has stood firm against recent dollar strength as the sell off in markets sparked bids into the safe-haven currency, but should U.S. inflation data later this week surprise to the upside, this resilience is unlikely to survive, strategies from BofA Global Research said in a recent note.
“If US CPI surprises to the upside this week, upward pressure for USDJPY spot is likely to resume, due to the pair’s high sensitivity to CPI surprises,” the strategists said.
The Japanese yen has remained resilient against the dollar’s recent broad-based rally, supported by its status as a risk-off hedge amid equity pullbacks and the already elevated USDJPY spot level, this could change with the upcoming U.S. Consumer Price Index, or CPI, report, they added.
BofA’s expects core print, which strips out food and energy, of 0.3% month-over-month, slightly above the 0.2% consensus. The CPI is data are slated for release on…
