Day-to-day moves are fine, but the Dollar’s valuation is not, Kit Juckes, Chief Global FX Strategist at Société Générale, reports.

A Yen recovery is only a matter of waiting for the BoJ to act

“The current state of the global economy, or the state of global geopolitics, doesn’t, in our view, come anywhere close to justifying the USD holding on to so much of its 2021-2022 gains.”

“On a day-to-day basis, positioning, yield moves, geopolitical uncertainty and economic data trends all suggest we may be stuck in narrow ranges for a while. But the sense that the Dollar is simply too highly-valued here, isn’t going to be easy to shrug off. Nor is the sense that a Yen recovery is only a matter of waiting for the BoJ to act.”