Yen Weighed By Reports BoJ Sees Little Need To Adjust YCC This Week

Yen underperformed within the G10 FX space on Friday, losing 0.34% against the USD. After making fresh lows early on Friday sub 138.80, the pair got above 139.70 late in the Asia Pac session on Friday. Weighing on yen was a Bloomberg report noting that BoJ officials see little need to adjust its YCC program this week (see this link for more details).

• By the NY close the pair was back in the 139.40/50 region, and we currently track close to these levels.
• Yen slightly outperformed the firmer US yield backdrop through Friday's session, but the divergence is not large by historical standards.
• Today's data calendar has the May PPI on tap, with the market expecting -0.2% m/m, versus 0.2% prior. The y/y is forecast at 5.6% (prior 5.8%). Later on, machine orders for May are also out, the prior y/y read was -14.4% (there is no consensus).
• Elsewhere, there may be some focus on domestic politics, with weekend reports noting a no-confidence motion being put forward by the opposition could lead to a general election (see this link for details).