A rare joint U.S.-Japan intervention to support the yen is gaining credibility, with U.S. Treasury Secretary Scott Bessent expressing confidence in the move. Analysts at ING suggest the currency is about 20% undervalued, pointing to a potential shift in its long-term trajectory.
BCA Research advises investors to sell the U.S. dollar, citing expectations of falling real yields and slowing foreign investment. The firm recommends buying the Korean won, Japanese yen, Taiwanese dollar, Singapore dollar, and the euro.
Bank of America Securities warns that recent U.S. Treasury actions to suppress long-term yields could undermine policy credibility and place further downward pressure on the dollar.
BCA Research advises investors to sell the U.S. dollar against several key currencies, citing expectations of falling U.S. real yields and a slowdown in foreign investment that has supported the greenback.
U.S. Treasury Secretary Scott Bessent is supporting the recent joint U.S.-Japan intervention to bolster the yen, a move analysts at ING believe could mark a turning point for the deeply undervalued currency.
Recent coordinated foreign-exchange intervention by the United States and Japan signals an informal 'currency alliance' linking FX policy with broader strategic goals, according to a research note from Citi.
The loonie strengthened against the greenback, supported by a 2% jump in U.S. crude futures and optimism as Canadian and U.S. negotiators met for a second day of trade talks in Washington.
UBS has raised its price target for the euro against the U.S. dollar, citing expectations that the Federal Reserve will pause its rate hikes while the European Central Bank continues to tighten policy.
UBS is holding a neutral outlook on the Japanese yen, citing the persistent policy divergence between a hawkish U.S. Federal Reserve and a more gradual Bank of Japan, which is expected to keep the USD/JPY pair elevated.
