We expect the disinflationary trend in the US to outpace other countries including the Eurozone and the UK, and we thus expect interest rate differentials, which are currently supporting the USD, to tighten.
Meanwhile, we neutralize our view on the JPY from most preferred as we see limited near-term catalysts that could outweigh the substantial negative interest rate differential. Nonetheless, our models suggest that the JPY is meaningfully undervalued.Information on these pages contains forward-looking statements that involve risks and uncertainties.
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