Yen bid for now, but watch the broader tone - Scotiabank

Analysts at Scotiabank explained that JPY was testing fresh lows at levels last seen in mid-March, before the latest Trump scandal news.

Key Quotes:

"Focus remains centred on the outlook for relative central bank policy, Fed-BoJ divergence, and the implications for yield spreads following last week’s fixed-rate purchase operation. 

Domestic risk lies with the release of PPI (7:50pm ET) ahead of Friday’s industrial production data.

The broader tone is supportive of continued JPY weakness."