USD has further upside scope but USD/JPY likely to lag – MUFG

Market news

21 August 2023

USD has further upside scope but USD/JPY likely to lag – MUFG

The US Dollar recorded another week of gains. Economists at MUFG Bank are maintaining their view of further USD strength over the short term.

USD bullish bias remains intact

We see limited scope for a dovish pivot by Fed Chair Powell at Jackson Hole and the Dollar and yields will remain supported for now.

With USD/JPY now in the danger zone we expect increased rhetoric from Tokyo that could mean USD/JPY lags.

See: Yen does not have many fans at the moment – Commerzbank

Only modestly higher profile for equities over the next six to 12 months – UBS

Jackson Hole could give new insights into the mindset of central bankers – Commerzbank

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