Credit Agricole on the yen and euro
EU political risks have arrived and are giving the JPY a boost. Investors are starting to hedge downside in EUR and many are doing it via
, especially given the still significant short JPY positions in the market. There are several important pieces of data out of Japan next week including IP, labour market, capital spending and inflation data. If the data was to surprise to the upside and show that Abenomics is beginning to work to boost potential growth and inflation, they could give the JPY a boost.
