SocGen Comments on Currencies, Including Canadian Dollar

The yen weakens against other G-10 and Asian currencies in the morning Asian session amid prospects of narrower U.S. tariffs that could bolster appetite for risky assets. The White House is narrowing its approach to tariffs slated to take effect April 2, likely excluding some industry-specific tariffs while applying reciprocal levies on a targeted set of nations that account for the bulk of foreign trade with the U.S. USD/JPY edges 0.2% higher to 149.64; AUD/JPY rises 0.5% to 94.18; EUR/JPY gains 0.4% to 162.19. (ronnie.harui@wsj.com)

The yen weakens slightly against most other G-10 and Asian currencies ahead of the Bank of Japan's monetary-policy decision due later today. The central bank is widely expected to leave rates unchanged. "The BOJ will likely want to assess the impacts of the January rate hike and U.S. tariff policies," CBA's Kristina Clifton says in a research report. "We expect the BOJ to next raise interest rates in July and December," the senior economist and currency strategist says. USD/JPY edges 0.1% higher to 149.49; AUD/JPY rises 0.2% to 95.13; EUR/JPY is up 0.1% at 163.48. (ronnie.harui@wsj.com)

The yen weakens against other G-10 and Asian currencies in the morning session amid risk-on sentiment spurred by Wall Street's gains overnight. The main theme has been risk-on, Commerzbank Research analysts say in a research report. Investors have welcomed a modest rise in U.S. retail sales and taken a breather from last week's round of tariff escalation, the analysts add. Also, "President Trump said he'll speak with Russian President Putin today as the U.S. pushes for a ceasefire between Ukraine and Russia," the analysts add. USD/JPY rises 0.2% to 149.47; AUD/JPY adds 0.2% to 95.44; EUR/JPY is 0.1% higher at 163.15.(ronnie.harui@wsj.com)

Most safe-haven assets such as Treasurys and the yen are higher in the early Asian session amid growing fears of a U.S. recession. "Headlines of recession risk rising (from low levels) abound", NAB's Tapas Strickland says, noting President Trump's interview with Fox News on Sunday. "U.S. yields are unsurprisingly lower," the head of Market Economics says. Market pricing of Fed rate cuts has increased, with total of 81.6bps of rate cuts priced by end-2025 versus 70.7bps on Friday, Strickland adds. The 10-year Treasury yield is 3bps lower at 4.1926%; USD/JPY falls 0.3% to 146.76; AUD/JPY drops 0.3% to 92.21; EUR/JPY is down 0.2% at 159.16. (ronnie.harui@wsj.com)

The yen is mixed against the G-10 and Asian currencies, but may be supported by prospects of more BOJ rate increases. "Another solid Shunto outcome this year will raise the chances of more Bank of Japan interest rate hikes," CBA's Kristina Clifton says, citing news that Japan's biggest labor union group said unions were demanding stronger wages growth this year. "We expect 25bp hikes in July and December," the senior economist and senior currency strategist says in a note. 'Shunto' refers to annual spring wage negotiations in Japan. USD/JPY edges 0.1% lower to 147.89; EUR/JPY is little changed at 159.56. (ronnie.harui@wsj.com)

The yen weakens against most other G-10 and Asian currencies in the morning session amid improved risk sentiment. The USD/JPY and EUR/JPY have rebounded, partly owing to optimism over increased EU defense spending, Nomura's research analysts say in a research report. Also, the White House's announcement overnight of a one-month tariff reprieve for auto imports from Mexico and Canada, is likely helping to bolster risk appetite. USD/JPY rises 0.2% to 149.24; EUR/JPY gains 0.3% to 161.15. (ronnie.harui@wsj.com)