Forex Briefing (WN07 2026): YIELDS & DIVERGENCE
This week, the short bias remains on the Japanese Yen (JPY) against the Australian Dollar (AUD) and New Zealand Dollar (NZD). The market mood is currently defined by “Political Reactivity” and a hunge
This week, the short bias remains on the Japanese Yen (JPY) against the Australian Dollar (AUD) and New Zealand Dollar (NZD). The market mood is currently defined by “Political Reactivity” and a hunger for yield, rewarding hawkish central banks while punishing fiscal instability.
This trend is expected to continue and to accelerate over the coming days as markets digest the fiscal implications of Prime Minister Takaichi’s election supermajority. Recent data showing a drop in Australian household spending and a miss in Japan’s Current Account reinforces the view that while Australia is cooling, Japan is structurally weaker.
The most critical event on your radar for the next few days is Japan’s Preliminary Q4 GDP data due around February 15 (depending on your timezone).
Remember to include Fundamental Analysis into all your trade plans.
DISCLAIMER: The information printed here is informational only, NOT advice. Trading involves risk, and you could lose money.