• The Yen carry trade* is being unwound sharply due to weak US data and a hawkish surprise from the BoJ, with the Yen’s dislocation from its fundamentals remaining large.
• Weak global growth and the BoJ on diverging path from most Central Banks in the world are tailwinds for the JPY. A fast trade weighted appreciation, though, would require 1) recession or 2) a persistent hike cycle from the BoJ.
• The repatriation of Japanese foreign assets is not a material risk for now, but its potential for a large market impact always warrants attention.

Summary

• Topic of the Month 
• Macroeconomics, Geopolitics, and Strategy 
• Global Investment Views 
• Macroeconomic and financial market forecasts

You can now read the full whitepaper at the link below