Yen: political developments in focus - Scotiabank

Analysts at Scotiabank explained that domestic political developments are in focus as market participants consider the snap election rumoured to be set for October 22.

Key Quotes:

"Japan’s lower house is to be dissolved September 28."

The recent JPY-negative widening in interest rate differentials appears exhausted and short-term risk reversals hint to a slight increase in the premium for protection against JPY strength."