![]() Flash EU GDP is seen rising 0.2% q/q in Q2, and 0.5% y/y. Key developments that could influence markets on Monday: 31 meeting when the BOJ updates its economic forecasts. Indeed, many analysts assume any major policy change won't come until the Oct. Greater yen volatility would make those positions riskier, but it's still attractive, especially as the next BOJ meeting is almost two months away on Sept. ![]() Right now, investors can still borrow yen for one month at -0.1% to buy pesos and earn 11.1%. This in part reflects the still huge gulf between Japan rates and emerging markets and the fact that many carry trades are funded at one month rates and rolled over. Even crowded carry favourites such as the Mexican peso have brushed off the BOJ's shift, with the peso nearing its highest since 2014 after jumping 2.3% on Friday.
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