Yen To Gain Against Usd Socgen

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Yen To Gain Against Usd Socgen

Yen To Gain Against Usd In 2024

According to economists, the one major currency which has the most chance to gain against the greenback is Japanese Yan (JPY). If we look at the current market situation, it appears that the USD is lacking momentum against the JPY as economic data releases are mixed at best.

Besides the forecast for a bearish USD/JPY, also sterling (GBP) is showing signs of vulnerability. In this regard, they added that the GBP/USD pair will likely go down as a sign of GBP weakness.

Ycc End In Sight

As for the reasons behind the GBP/USD downtrend, they added that it has to do with the stagnation of the UK economy. Additionally, the upcoming rate cuts by the Bank of England will also translate into sterling weakness.

For the EUR/USD, economists added that the pair will likely remain stuck within a familiar range for the short-term. Any moves from the European Central Bank and the US Federal Reserve will act as the catalyst.

Coming back to the topic of the USD/JPY, the reason behind the forecasted downtrend is the talks of an end of negative rate by the Bank of Japan.

Pretty much everyone agrees that the BoJ will officially end the yield curve control (YCC). Given the current circumstances, an end of the YCC will be more of a symbolic move, but it will still be a significant move for the markets.

The end of YCC will signal that the BoJ is moving from negative rates into the territory of higher rates in the coming months.

When we consider the fact that FED will be cutting rates while the BOJ will start its rate hike cycle, it is only natural to see that Yen (JPY) is still too cheap at the current levels.

Historically speaking, the USD/JPY could be seen trading at lower levels, such as 120.00, 110.00, and even near 100.00.

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