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North Korea is boosting the yen but this is certainly not the only force shaping market movements. Here is the view from Credit Agricole:

Here is their view, courtesy of eFXnews:

Credit Agricole CIB FX Strategy Research notes that the  markets have started paying closer attention to Japan’s domestic data as the correlation between Japan’s economic data surprises and the JPY TWI has picked up significantly.

“If the data continues to improve, it could threaten a shift at the BoJ some time in the distant future. While a long way off, any even modest change by the BoJ to its policy stance would have a large impact on markets, so investors would move significantly ahead of it,” CACIB argues.

In terms of this week’s key data, CACIB economists expect Japanese inflation data to show an acceleration projects the core CPI (CPI excluding fresh food) to rise to 0.7% YoY from 0.5% YoY.

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