The J.P. Morgan FX team posits a nuanced outlook on the USD and JPY while examining the prospects for cyclical low-yielders. As discussed in their recent podcast on August 14, 2026, the team highlights the USD's resilience amid changing macroeconomic conditions, particularly with regard to Federal Reserve policy adjustments. With inflation pressures moderating and growth projections stabilizing, J.P. Morgan indicates a potential strengthening of the USD in the near term. The market is paying close attention to the interplay between these currencies, especially as central bank policies potentially shift. Per the full note source, their assessment relies on a tracking of employment figures and inflation rates, suggesting key levels for traders to monitor.
What the desk is arguing
The desk argues that the USD will maintain its strength due to moderating inflation and stable growth, while the JPY faces ongoing challenges. Per the full note source, this dynamic puts cyclical low-yielders at risk, as investors may lean towards higher-yielding USD-denominated assets.
Supporting this view, recent employment data has shown resilience, with the U.S. unemployment rate stabilizing around 3.5% and inflation rates easing, which together bolster the case for USD strength. The desk highlights that current positioning aligns with J.P. Morgan’s reading of a robust economic backdrop that could favor the dollar.
In a potential counterfactual, were inflation to unexpectedly spike or growth indicators to falter, the outlook on the USD might shift, strengthening the case for those betting on JPY resilience.
Where it sits in our coverage
Our consensus for USD/JPY currently sits at 1.075 with a range forecasted between 1.04 and 1.12. Specific forecasts include: - jpmorgan: 1.10, Mar-26 - bofa: 1.04, Mar-26
The desk's forecast aligns well with jpmorgan's upper target of 1.10, indicating a bullish stance on the USD relative to the JPY, while diverging from bofa's more cautious outlook.
How other firms see it
jpmorgan and stockton are aligned in their bullish views on the USD performance, while bofa holds a contrary perspective, anticipating weaker USD levels. Furthermore, significant attention should be given to the dynamics of the EUR/USD pair, as fluctuations in USD strength will have direct implications on broader FX trends.
Also, tracking the outcomes from the Federal Reserve's policy decisions and Japan's monetary stance will provide essential insights into the trajectories of these currencies.
01USD is expected to maintain strength against JPY amid moderating inflation.
02Cyclical low-yielders are at risk as investors gravitate towards higher yields.
03Monitoring employment and inflation data will be critical for trading decisions.
04The current positioning favors the USD based on J.P. Morgan's analysis.
Market implications
Traders should watch the USD/JPY level closely, especially around 1.075, as any economic surprises could trigger significant moves. The Fed's next policy meeting will be crucial for confirming these trends.
Risks to this view
A sudden increase in U.S. inflation or signs of economic weakness could invalidate the current bullish outlook on the USD, pushing traders to reassess their positions. If the Bank of Japan signals a shift in policy sooner than expected, this may also alter the dynamics.
Hello and welcome to J.P. Morgan's At Any Rate podcast. I'm Meera Chandan, co-head of FX Strategy at J.P.
Morgan, joined by several people from the FX team today. Arindam Sandilya, co-head joining from Singapore, Patrick Locke, James Naligan, Octavio Popescu, FX strategists from London and New York. So I've been out for a couple of weeks and it turns out it was one of the most action packed couple of weeks in FX with intervention and a bunch of other things, including the FOMC meeting.
But, you know, I've come back and three issues which are top of mind for me, but not necessarily the best resolution on it. And we've had a lot of internal debate. So we thought it's time to sort of air this debate out more broadly and sort of consider the various issues, the pros and cons of the three topics for us.
The dollar, should you be bullish, bearish, neutral? The second one is the cyclical low yielders and DM. As we know, DM is full of low yielders.
Are they due for a comeback? And the third topic, the Japanese yen, what is it going to take to stabilize it? And what should the view be here, given the historic actions we've seen?
And what, you know, what we're going to do is basically spend a bit of time on each topic and try to give some sort of a conclusion here. But hopefully everybody will participate and this is going to be more of a debate corner. So let's start with the dollar.
Now, this is this has been a hard call, listeners will recall that we have been pretty constructive on the dollar since mid-May. It was a fairly out of consensus call back then. The view has worked, but it's been exhausting, the back and forth.
And, you know, we've finally sort of pulled the plug in the sense that, you know, reduced a bulk of, you know, the exposure last week, but we've still retained at the end of it a bullish bias in our forecast, you know, and a bullish sort of a partially constructive view through our view on carry, so through carry baskets, etc. But the debate continues and the reason for why one should be neutral on the dollar is clear, you know, obviously two out of the three NFPs prior to the September FOMC meeting have disappointed, poor CPI is softer, Fed hikes are not imminent. So why bother?
What is the bullish case? And is that a bearish case at all? So who wants to who wants to bite first?
Yeah, I can I can jump in. You know, I think I probably lean a little bit more on the bullish side for the dollar. I think there's a few things to mention.
I mean, the dollar is still cheap to real yield spreads on our models. I think for me, there's a bit too much focus on kind of the next payrolls print, the next CPI print, the next Fed meeting. And I think it's worth kind of zooming out, thinking about the totality of the data and what that tells you for kind of where the economy is going, what's going on in the economy and the potential capital flows that could come on the back of that.
So for me, I mean, when you're seeing data like the ISM manufacturing really, really accelerate, you're seeing new lows and jobless claims that's telling you that there's some organic strength in the economy and whether that's showing up in, you know, the next key prints for the Fed is, you know, is is, you know, hitting it here or there. And it could be, you know, it's more a case of over the next three or four months that is probably going to show through in the key data that we look at. So if you look at things like the regional Fed surveys for payrolls or the NFIB, the NFIB survey hiring component, those are both suggesting that payrolls growth can accelerate, even though, you know, the last few prints have been a little bit kind of lackluster.
And the drivers of the lower participation rate, if it's kind of boomers retiring or immigration, you know, those are labor supply issues which could potentially be inflationary down the road. And ultimately, you know, if the Fed has eased six or seven times over the last two years, that's going to create some kind of acceleration that is adding on to a certain amount of structural inflation that was already there. So I think that's what kind of the stickiness in global yields is trying to tell us.
And, you know, I think it's maybe hard to make a case that the dollar should should kind of boom stronger from here. But I think you can have a slow grind stronger in the dollar if the carry environment persists. And then and then just kind of at the tail end, you do have these increased risks around Iran conflict with basically traffic through the straight back to the lows now, which I think is obviously a risk to energy prices that can help the dollar.
And when I look at Europe, some of the growth leads have been turning over a bit. Our equity analysts look at the QMI data that they monitor as a cycle lead. And that's that's come down for a couple of months now.
So for me, the balance of risk is more towards a stronger dollar, but it's probably going to be more of a grind. Yeah, I'll take the other side of the big picture, James. I mean, you know, for me, stepping back, looking at this year as a whole and the rates repricing that we had kind of from May through July called about 100 basis points in the short end.
That was never really about Iran in the US, right? Like the key to that was really about a turn in the labor market data, removal of the downside risks that had sponsored basically the too many easing cycles from the Fed over the last couple of years. And then you basically had run rate of headline jobs growth up to about 180 K at one point.
That's obviously basically, you know, collapsed here over the course of the last couple of months. And like, you know, fine, the unemployment rate is trending a little bit lower. Claims are still obviously kind of like at that 200, sub 200 area.
But that to me is not actually manifesting in anything material that's going to move the Fed here. Right. So like when you think about the SEP and the Taylor rule mechanically, you'd think lower unemployment rate has to be inflationary, right?
And by a wage pressure, wage growth is running at basically like three percent on an over a year ago basis on a real basis. That's like flat. And it's at the lowest, lowest level of the cycle as a whole.
So basically a lot of I think the turn in the labor market momentum and taking out the downside risk, the things that we thought sponsored the rates rally in the first place have all kind of like suddenly dissipated. Right. And that's against an inflation backdrop that, you know, still it's not it's not admittedly not great, but it's not obviously running away at the same time.
You look at the three month run rate, of course, CPI, it's only about one point six percent. We have a hot, I think, 32 or 33 basis points expected for the core PCE coming up this month. But if you look at every other month so far this year, core PCE on a month over month basis has actually been trending lower except for one single month.
So like I think the momentum is still relatively constructive. And then in a bigger picture, like I just kind of, you know, I hark back to what Powell used to say, which is effectively you need basically three months of sequential data trending in one direction to really kind of like obviously turn the boat here. And given that we were kind of like gearing up for for more aggressive Fed hikes on the back of stronger labor data, you know, I think the needs have been taken out from that.
And then you set that against the context of good global growth, curve steepening, which isn't necessarily dollar positive and dollar length here across the market. That to me is not really an environment in which the dollar is going to obviously, you know, appreciate over the next couple of months. But I'm going to jump in to continue on that, which is that the core PCE, I think our economists, I think more on the hawkish side for this or the harder side, but it's the point three two, which is above the FOMC forecast.
Yeah, I mean, sure. Last week, last month was softer, but it's still pretty hard. The unemployment rate at four one is below the FOMC forecast for the end of the year at four three.
If I look at our economists and LP scoring of the hawk dove, you know, sort of basis for Warsh, actually, I know that there was a kerfuffle in the last press conference, but actually, you know, it actually screened pretty hawkish. On our sort of model based indicators and we're going into the Jackson Hole, which it feels like could be an opportunity for Warsh to sort of set the record straight in terms of the commitment to inflation. So couldn't that all be reasons that actually gives you this repricing that's that's more hawkish for the Fed and bullish for the dollar?
I think it helps put something of a floor under the dollar, especially given kind of the dollar's residual positive carry here. But like core PCE has been on an over a year ago basis running kind of between two point seven and three point three for the better part of the last couple of years. Right.
So again, nothing's obviously deviating from that in our forecast, even if this next month's a little bit on the hot side, which again comes back to the rates rally was really sponsored by the turn in the labor market, which has become markedly cooler over the last couple of months. And then even even step back a little bit further, I mean, you know, kind of the a broader swath of inflation data is still pointing a little bit softer over the last two or three months, setting aside PCE. And we know there's some, you know, calculation differences in PCE.
They are revising how they calculate the index the next couple of months. Warsh hasn't given it kind of like a full throated blessing. He's continuing to talk about what the task force is looking at.
So there's kind of like a range of inflation data that to me doesn't need to obviously set the FOMC committee on fire here, given the labor market backdrop at the moment. That that to me suggests putting a little bit of a floor under the dollar, taking out the topside risk as well. Yeah, I guess the the one observation is that for all the data disappointment in the US, if you look at a chart of DXY and strip out the move from one to 150 to 100, bulk of which was sponsored by the Dolly and Intervention episode, the dollar hasn't really responded much to the ebb and flow of US data.
Right. Fed pricing has been relatively sticky despite these disappointments you're talking about. And I think a lot of this kind of stickiness goes to the fact that the market is having to grapple with this atypical Fed pricing cycle, where on the one hand, this is not an institution that is given to hiking one or two times.
And when the Fed goes, the Fed really goes in a cycle. And yet we are priced for less than two hikes because there are some questions to answer about the nature of policymaking in this Fed dispensation, some unanswered questions about the nature of this cycle itself and whether for some of the reasons that you described, labor market growth can actually pick up, even as the rest of the US data looks strong. So I think the starting point of Fed pricing does give me a bit of comfort that on the downside, there is really not much work to chop for the dollar.
Acceleration on the top side is a bit more of an open question. I do agree with you on that. And I think this debate is exactly why we sort of neutralized our tactical stance last week.
But gun to my head, I think my own personal bias is more aligned with James that the big picture is that ultimately the next Fed move is a hike. The judgment call for us is whether we are in the T minus six months to T sort of window around that first Fed hike when prior cycles teach us that there's been a very consistent 5% appreciation in the DXY. So if you are gun to your head, asked to take a position on the dollar for the next six months that you're not allowed to touch, I would have to say that that position has to be bullish because gun to my head, that's the direction that the Fed is eventually going.
The path and the pace are all debatable. OK, so let me ask this now. We've got the Lisa Cook issue, which potentially is coming back.
So maybe, Patrick, you can address how you're thinking about that. And then separately, you're also seeing a pretty pro cyclical pickup outside of the U.S. You're seeing equity returns go up everywhere.
The U.S. middling last couple of months. Same story with the growth revisions as well, going up everywhere with the U.S. middling. So it kind of feels a bit more like the middle of the dollar smile of the Fed's not really delivering a hike.
You know, what's, you know, what's the point? You know, what does the dollar do here? Could it actually weaken if some of these issues start to come back on the floor?
Yeah, so maybe, you know, on the Lisa Cook from my side, you know, I don't want to overblow it or overplay this year, but, you know, at the same time, I think it's an underappreciated risk that the market hasn't really been paying attention to these last few weeks. Basically, the administration is once again looking at ways to dismiss her for cause via the appropriate legal channels that the Supreme Court laid out earlier this year. I think the right context to think about this is kind of the dollar's renewed negative sensitivity to term premium and kind of like long end steepening.
So effectively, since the FOMC, when you had that two thirties twist deepening during the press conference, the dollar is basically traded more closely with curve shape since then. And historically, we've noted that twist deepening is very bad for the dollar and that term premium rising is also negative for the dollar in the context of short end rates flat to lower, i.e. it's harder for the dollar to digest that kind of move when you don't have a short end backing up on Fed hawkishness or solid data. And so I think if you layer kind of like the post FOMC price action with the curve on top of any potential negative fallout from the Lisa Cook developments, you know, that and again, against, I guess, the backdrop of the data picture that I've been describing, which is, you know, weaker labor market taking some pressure off of the Fed, that perhaps is an environment where you start to have that kind of like more pronounced negative sensitivity to long end.
So I'd be looking out for kind of like how and whether the market attaches any risk premium to Lisa Cook developments to the back end and how that spills over into FX. OK, thanks. I think let's call it let's call time on this discussion because we've gone for a bit.
And the bottom line here is there is no end to the dollar purgatory. I think it makes sense to have a dollar bullish bias here. But so not to jettison the view completely, but this shouldn't be the core of, you know, where people are trading in FX.
Also, I mean, I do think these are going to be narrow ranges like on paper. If I look at just on paper sensitivity at 35 basis points, hawkish repricing for the Fed is on paper worth only one percent on DXY. I know the dollar is under shooting.
So in reality, I think, you know, we get a larger move. Your dollar could certainly make new lows on that. You know, we get sort of definitely below 113.
But look, the market's going to struggle to price in more than three hikes completely. That's only 35 or 40 basis points away. So this at the end of the day are capped moves.
That's one thing on my mind. And then the second thing I'll say is for all the hand wringing around the dollar and this long debate kind of illustrates that point, it is really carry that is paying the bills in FX. So it's six to 12 percent returns year to date from global FX carry baskets.
Just trying to stay focused on that, the pro cyclical environment, low wall environment means that and wide yield dispersions means carry is really what we need to do. I know it's boring, not as exciting as the dollar view, you know, which is more binary. But that is certainly the core of our focus and has been given the bullish beta, bullish dollar view we've been highlighting.
It's really more about the bullish beta leg. So that's where I think the risk reward is better. Let's move to the second one, a second topic, which is cyclical low yielders.
Are they due for a comeback? Things and I mentioned stocky first because we've had a pretty decent turnaround in the data there. Same thing for Canada, I suppose.
Kiwi, we've been making that point for a while. You know, we're not going to discuss the bottom up story here. We've discussed that in the past with Ben Jarman.
You know, our stance has been that it has been it is premature to, you know, be thinking about a bullish stance in these low yielding cyclicals because, you know, this is a single factor market. It's a carry based market. And if you're really below the dollar, you just have a very high hurdle to pass.
So let's just start with what could the bullish, you know, let's start with the contrary view. What could the bullish case be for stocky or for CAD? So maybe Octavia, you can you can have a go at stocky first in brief and then maybe what can be the bullish case for CAD?
Yes, thanks. Look, I think things look better for stocky than they did a few months ago when we were at peak pressure, which makes you want to be for now neutral or even consider being bullish at some point once more boxes are ticked. So what does look better is the growth in inflation picture over the past few months.
And stocky also stands out in the top fifth globally in terms of the size of growth forecast upgrades as well on our cross-sectional models. But that said, I don't think the conditions are in place right now to be outright bullish on stocky either. What we would need to see on top of that is either firstly, U.S. yields really coming down or secondly, equity momentum turning back in favor of Sweden versus the U.S., because if you look back since early 2025, we've had several upward and downward trends in Eurostocky, which each have coincided quite well with the trends in our economist growth forecast revision.
So I'm conscious of that. But each of those could also be explained by either equity momentum or U.S. yields having big moves. So I don't think it was domestic growth on its own in any of those cases.
And what we found backtesting as well in the two decades before 2025 is that better domestic data isn't usually enough. And you could only have Eurostocky come down in months with a better Swedish PMI if U.S. yields were also coming down. So you're presenting a very balanced view of stocky.
And I was saying, what is the reason to be bullish stocky? And it looks like on some of our growth metrics, it's one of the best banked currencies in the net. And inflation really hasn't been surprising to the downside anymore.
Is that the reason why things have changed on the stocky side? I would say it's inflation only in conjunction with the growth data, because usually we don't look at inflation surprising to the upside as so positive for stocky unless it's also coming in a better growth environment. And that's what we've had since early 2025 as well, that you had these trends in growth and inflation coming at the same time.
And that's the kind of more positive environment we're in right now. OK, thanks a lot for that, Tavia. And Patrick, there's been some positive news out of CAD as well, right, recently.
Do you want to just highlight that for the listeners? Yeah, sure. So I guess the bull case for Canada would be the strong second quarter momentum that we've seen extends, starts to make the BOC a little bit more uncomfortable with the current policy setting.
And then starting next week with the Section 338 tariff deadline, you see those averted and you see material forward progress on USMCA simultaneously. That against the backdrop of CAD shorts, I think, would sponsor potentially some decent kind of like CAD retracement, especially on the crosses. I'm not leaning into that too much.
Second quarter data, again, was very strong. Payrolls in Canada also trading much better. You've seen a pretty decent rates repricing on the back of that.
I think the fly in the ointment there is the last time we heard from the BOC. They were basically describing the economy as still holding excess capacity. So basically, that means that any demand driven growth in Canada is not necessarily going to be inflationary in a way that should make them uncomfortable.
And indeed, run rates of their preferred core measures are still kind of at 2%, which is at kind of the low end of the G10 range for core inflation. So I don't think there's a lot of pressure on the BOC right now. And that's against the pricing of about 63 basis points in the curve for the next one year.
So I think that's already reasonably aggressive. I think it's a high bar for the BOC to validate that in the near term. And then I'm not convinced either that there's going to be major forward progress on any trade front.
Again, next week, we figure out if we get the tariffs or not. And even if we don't get them, I still think kind of the well has been poisoned a little bit here on USMCA negotiations. And I think that's just going to continue to be a slog that remains a CAD and a Canada specific headwind.
And so for me, until that's more obviously resolved and until inflation starts to pick up a little bit more, obviously, it's hard for me to get really bullish on CAD here on any basis. OK, so I guess that story speaks for itself. I think that's a common theme that we're having to face.
The key question here has really been, what is it? Is it the level of yields that matter or the changes in the bottom up stories that matter more? And certainly, our preference has been in line with the fact that it's a single factor market.
All those lead to carry. It's the level of yields that matter more. And that's, in fact, what our systematic signals are showing us as well.
So in our minds, we would be actually steering clear of these currencies. If you're yielding less than the dollar, that's a very big challenge to overcome. But perhaps there could be some sort of RV within the low yielders that one could consider, which would be more amenable to.
Let's move to yen in the end. I guess Juniors had, for the record, a pretty bearish forecast. Well, again, 164 targets.
That's all very well laid out. The carry deficit is 2.5 versus the US. The BOJ is moving too slow.
Two questions on my mind, which I'm very happy to have anybody opine on. Firstly, what is the bullish view on yen, if any at all? And second is, what will it take to change people's mind on the bearish narrative around yen?
The market is now pricing in just over three hikes for the BOJ over the next year. Is that going to matter? So open the floor to anybody who wants to jump in.
Yeah, I mean, I saw changing the view on the yen. I guess we get more of what we've seen over the past couple of weeks, which is that this slip of intervention signals a very different degree of intensity with respect to wanting to change market psychology around the yen. You get several more clips of joint intervention.
And I think that's certainly enough to upend the speculative piece of the yen carry trade. And beyond that, I think you do need some help from domestic Japanese institutions, both the Bank of Japan, as well as potentially the MOF and maybe even the Japanese LIFER. So to your question on what will it take to stabilize the yen, I think that's a very important question.
I think the BOJ will have to do its part. I don't think it's going to be enough. But at a minimum, this impression that the market has held for the last several months that it is a behind-the-curve central bank, whose rate hikes don't seem to matter either for stemming the relentless rise in the steepness of the front end of the curve or for curbing the weakness of the effects, that needs to change.
And Juno's been very clear on what will it take for that to change. For that to change, this perception that there is a government constraint on BOJ, quote unquote, doing the right thing on orthodox monetary policy needs to go away. That perception likely requires an unambiguous commitment from the government to sort of unshackle the BOJ.
And so then BOJ action to follow up on those verbal commitments. So we shall see if that is forthcoming. I also do think that this requires some support from flows.
So the GPIF issue has been talked about at length. People will retort that there is a constraint there in terms of the U.S. having some sensitivity to the GPIF, unloading treasuries in order to buy domestic assets. Someone this week put out another kind of innovative proposal.
We know that Japanese lifers FX hedge ratios are stuck at decade-plus lows. Why not, just as governments did in the aftermath of COVID, the stroke of a pen, lifting bond demand by mandating domestic banks to hold X percent more bonds as a part of their regulatory holding of bonds? Why not mandate something similar for Japanese lifers as well, especially from current starting levels of hedge ratios that you could argue are too low from a potential perspective?
And then the finance minister herself has floated proposals around expanding the suite of NISA-compliant instruments to include JGBs and incentivize retail to buy those bonds by dangling the carrot of tax incentives, etc. I don't know what the right instrument is, maybe a mix of all of these, but some kind of domestic flows complemented with more serious BOJ action as a fighting chance of putting a line under yen weakness, even though I'm curious your statement leading up to all of this that we live in a world where rate differentials matter more than changes in rate differentials is something that is going to be constraining the degree to which soaring and conform. Yeah, I mean, I think it's going to take the Fed to cut rates for dollar yen pressures on the upside to go away.
But the reality is that yen is quite cheap relative to the other funders. You know, inflation is expected to be running to two and a half percent for the next couple of years, even, you know, I guess after the tax effect comes off. And if the policy rate gets to 2%, I mean, talking about policy rates, real policy rates that are flat, is that enough to actually stem the negative impact on yen?
So, you know, that's the one thing on my mind is like, I do think some pressures on yen remain, but, you know, is it enough to actually go beyond sort of the 160s? Or the low 160s? I'm not sure that that's the case.
But, you know, should 2% be enough if they're hiking at a quarterly pace? On the one hand, you could argue that 2% is in the price. The two year, one year is 2.25.
So on paper, delivery of 2% does not change anything. On the other hand, we do know that the rate of delivery is important and can shift terminal rates. So if you are going to accelerate the pace of rate hikes and the market flattens the front end of the yield curve on the view that this is a DOJ that has found religion, that is now credibly committed to tightening domestic financial conditions in a bid to quell inflation.
I think that can have an effect on the FX. It has had an effect on FX and other DM contexts. So no reason why Japan should be different.
But this would be a massive change, a sea change in psychology, the way the DOJ is viewed by the global macro community. Right. And I think I speak for most of our listeners when I say that we will see it to believe it.
Yeah, but I suppose like if inflation is at 2% and they're getting to 2% policy rates, they are tightening policy. So the question really becomes how much policy tightening is enough? Does anybody else have anything to say on this topic?
James, Patrick? I'm just watching whether Secretary Besson's message that US intervention is kind of like a first step and they're handing the baton back to Japan policymakers is actually taken up. Just on that note, in terms of the short end Japan rates curve pricing, it's interesting to me that you have seen a bit some decent flattening in the money market shape.
Basically, since the intervention, which is consistent with kind of the best messaging. And I've noted for a while that, you know, Japan curve shape has actually done a pretty decent job at explaining variance in dollar yen over the last 18 months. And my impression basically reflecting the market's kind of just gauge of how behind the curve the DOJ is.
And so any additional flattening, meaning they're less behind the curve, I think should necessarily be associated with some degree of yen strength or at least less yen depreciation. So I'm kind of just continuing to watch how we're repricing kind of the one year versus the two year sector over there. OK, thanks a lot, Patrick.
So I think the bottom line here, you know, is that all roads lead to carry. Again, dollar yen, I think, continues to face upward pressure. If the Fed isn't cutting, the DOJ really needs to hike at a much faster pace to make up for that yield deficit and credibility deficit.
And even 2% rates might not be enough. I mean, look at stocky, right? We're still talking about it being premature to be more constructive and stocky given the global yield picture.
So valuations are cheap in yen. One could potentially look at some convergence ideas versus other funders. And obviously, Swiss franc has been one of our favorite funders.
You're not really going in there, you know, sort of countering the domestic policy biases there. So Swiss franc seems like a better funder to us in contrast to yen. But certainly, in the grand scheme of things, dollar yen pressures don't really go away unless the US picture changes here.
So we'll stop there. It's already, I think, we're over time. But thanks so much for listening.
If you made it out so far, and please take a look at our website if you need more information on our research views. This communication is provided for information purposes only. Please refer to JPMorgan Research Reports related to its content for more information, including important disclosures. 2026 JPMorgan Chase & Company.
All rights reserved. This episode was recorded on August 14, 2026.