Breaks below 213.00 eyes on 212.00

Breaks below 213.00 eyes on 212.00

GBP/JPY retreats over 0.55% on Wednesday as the Japanese Yen strengthened in the aftermath of last week’s intervention in the FX markets by Japanese authorities. At the time of writing, the cross-pair trades at 212.60 after reaching a daily peak of 214.23. GBP/JPY Price Forecast: Technical Outlook The GBP/JPY is poised to consolidate after clearing […]

Inflation shock drives underperformance risk – MUFG

Inflation shock drives underperformance risk – MUFG

MUFG’s Michael Wan highlights that the Philippines faces heightened vulnerability to Middle East supply disruptions, with April Consumer Price Index (CPI) surging to 7.2% year-on-year, far above expectations. He expects Bangko Sentral ng Pilipinas (BSP) to hike rates further but sees limits given weak growth. MUFG projects USD/PHP could move towards 62.00–63.00 if the Strait […]

Hedging demand rises with Banxico in focus – BNY

Hedging demand rises with Banxico in focus – BNY

BNY’s Geoff Yu argues Latin American FX and equities now represent a single crowded ‘total return’ trade, with all regional currencies still overheld while bond holdings begin to reverse unevenly. In Mexico, expectations for lower rates are driving more FX hedging ahead of a likely 25 bp Banxico cut, even as sovereign bond demand stays […]