global overview

A stronger Japanese economy should boost the yen, UK inflation rates are set to increase short term with a modest slowdown forecast for the coming year and there are signs of economic growth in the US

japan1 David Shairp, global strategist at JPMorgan Asset Management said: "Recent signs of strength in the Japanese economy should boost the yen. History suggests that when the leading indicators (both official and survey data) in Japan are firming, this should be accompanied by yen strength versus the dollar. Historically, there tends to be some seasonal strength of the yen during April, including 2006 when the Bank of Japan ended quantitative easing. The carry trade is fundamentally less attractive than it was before the turbulence of late February. These trades are often based on a r...