With Trump's unpredictable behavior leaving investors on edge, the Japanese yen has scope to appreciate further in the short term.

Lukman Otunuga

Categorized in : Business

Heightened political risk at home coupled with Brexit uncertainty may prompt the BOE to repeatedly delay monetary policy normalization in 2018, if expectations continue to diminish over the central bank raising UK interest rates, sterling is at risk of experiencing heavy losses down the road.

The prospect of easing supply curbs from OPEC-led producers continues to be reflected in oil's overall depressed price action.

With rising production from U.S. shale adding to oil's woes and reviving oversupply concerns, further downside could be a possibility in the short to medium term.

With Trump's unpredictable behavior leaving investors on edge, the Japanese yen has scope to appreciate further in the short term, however, a strengthening dollar on the back of heightened U.S. rate hike expectations could limit the yen's upside gains.

Markets will also be paying very close attention to see if the minutes suggest that the recent fall in inflation is' transitory', with suggestions of higher rates still on the cards, unless the U.S. economy decelerates.