Japanese Yen futures traded higher for a 2nd consecutive session, reaching a 7 session high. The primary driver for the price action appears to be the market reaction to the recent election in Japan and the perceived potential for a shift in monetary policy. While other major currency markets showed weakness, the yen demonstrated relative strength. Supporting this move was softer economic data from the U.S., where retail sales figures arrived below expectations. This upward momentum follows a period of 6 consecutive lower closes that had previously pushed the market to a 2 week low. While the British Pound futures and Euro futures moved lower, the yen and Canadian Dollar futures remained firm. Dan Deming breaks down the recent trends and performance of the major FX pairs.
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