JPY is soft, lacking clear catalyst – Scotiabank

The Japanese Yen is soft, down 0.2% against the US Dollar (USD) and underperforming most of the G10 currencies along with AUD and NZD, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

CFTC data reveal liquidation of JPY longs

"Domestic releases have been limited and yield spreads remain steady, offering little in terms of fundamental drivers. The market tone is also lacking in terms of clarity, suggesting that the latest pullback in JPY is likely to be driven by market positioning."

"The latest CFTC data revealed a continued erosion in the bullish JPY position, which has been steadily declining since April. Near-term risk lies with the Q2 GDP and industrial production releases later this week."

Aug 12, 2025

GBP is outperforming with modest gain – Scotiabank

The Pound Sterling (GBP) is up 0.2% against the US Dollar (USD) and outperforming all of the G10 currencies as markets respond to the release of stronger than expected employment data.

USD/JPY jumps to near 148.50 ahead of US inflation data

The USD/JPY pair extends its winning streak for the third trading day on Tuesday and advances to near 148.50 during the European trading session. The asset strengthens ahead of the United States (US) Consumer Price Index (CPI) data for July, which will be published at 12:30 GMT.