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JPY is outperforming post-election – Scotiabank

The Japanese Yen (JPY) is strong, up 0.6% against the US Dollar (USD) and outperforming all of the G10 currencies as market participants respond to this weekend’s upper house election result, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

Japanese markets are closed for holiday

"PM Ishiba’s ruling coalition lost its majority but the prime minister has vowed to stay on, offering markets some reassurance as they seek to assess the implications for Japan’s fiscal outlook. Local markets are closed, leaving Japanese bond yields flat, and yield spreads are narrowing in a JPY-supportive manner as a result of softer US yields."

"The options market is moving in the yen’s favor and pricing a slightly higher premium for protection against upside risk. For USDJPY, we look to near-term weakness given signs of a pullback from the upper end of the 142-148.50 range."

US Dollar slips as trade tensions flare, Fed uncertainty weigh on sentiment

The US Dollar (USD) kicks off the week on the back foot, slipping against major currencies in Monday trading. Investors are reacting to renewed trade tensions ahead of the August 1 deadline and a generally cautious market sentiment.
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Canada Industrial Product Price (MoM) above expectations (0.1%) in June: Actual (0.4%)

Canada Industrial Product Price (MoM) above expectations (0.1%) in June: Actual (0.4%)
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