Yen outperforming in market U-turn - Scotiabank

Analysts at Scotiabank explained that JPY is outperforming along with gold, its gains driven by a turn in the broader market tone following the release of unexpectedly weak trade figures out of China.

Key Quotes:

"The turn highlights JPY’s vulnerability to knee-jerk haven-driven gains in periods of risk aversion and shifts the balance of risk to near-term strength. Measures of implied JPY volatility are rising and risk reversals are rebuilding a greater premium for protection against near-term upside. Domestic developments have been limited, with local media hinting to the potential for a mark-down in the BoJ’s inflation forecast. The headlines coincided with comments from BoJ board member Harada pushing back on expectations for near-term easing."