Mixed signals, including an improvement in global economic indicators and what's increasingly looking like a second wave of COVID-19 infections in the US, have kept USDJPY in a narrow range. That second wave has already caused uncertainty about the US economy and could drive US long-term rates down and weaken the USD. We would also expect it to push global capital flows in general and Japanese investors in particular to developed markets and high quality assets.
In this episode, Takahiro Sekido, Chief Japan Strategist of Global Markets Research, MUFG Bank Tokyo discusses global investors' flows in and out of Japan around the end of June, as well as updates of his view on the Yen, JPY rates and JPY cross-currency basis.
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