Credit Agricole CIB FX Research notes that the main focus for the JPY traders this week with will be on Japan's inflation data and FOMC meeting this month.
" CPI inflation is expected to remain unchanged in June at 0.4%. Even if this week's data were to surprise higher there will be only a limited impact on the monetary policy expectations and the currency.
Considering there is a 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.
The result of this, we expect the JPY to remain subject to downside risks, against the AUD and the EUR.
Source of the data: Bloomberg Pro Terminal
Trader - S. Fuchedzhiev
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