Slower growth everywhere ought to help the Yen – SocGen

Kit Juckes, Chief Global FX Strategist at Société Générale, analyzes the latest growth data and its implications for the FX market.

The most resilient major economy may be Japan

Monday’s US Services ISM data seem to have flown under the radar. They were very soft but haven’t had a discernible impact on rate pricing or on the Dollar. 

I can understand why soft US data currently has less impact on EUR/USD (and indeed many other pairs) than usual – the US may be slowing but the European data are at least as bad and indeed the downturn is pretty general. 

The most resilient major economy may be Japan, and that should provide some support for the yen as the market waits for next week’s BoJ meeting.