The good news just kept on rolling in after the IMF upwardly revised its global growth forecasts last week, but economists are keeping a close eye on the very real downside risks that still hover over the global economy.
Oxford Economics came out with even more upbeat forecasts for the US, UK and the world, seeing the former two rising by 7% or more in 2021, and the world growing by more than 6%. That compares with the IMF forecasts of 6.4% in the US, 5.3% in the UK and 6% for the world.
Other upbeat economic data released over the past week provided further confirmation that the US is recovering faster than expected. The March US PMI data was far higher than consensus, coming in at 64.7 versus the expected 61.5 a 37-year record high.
4/2/2021 4:36:53 PM GMT
USD/JPY gains 1% on the week, 3.9% on the month, 7.2% on the year.
Excellent US March payrolls help to stabilize USD/JPY near highs.
Limited Good Friday liquidity inhibits currency market payroll response.
Treasury rates mark time,10-year yield moves back above 1.7%.
FXStreet Forecast Poll is neutral short-term, bearish medium and long-term.
The US yield engine continued to power the USD/JPY as the differential between Treasuries and Japanese Government Bonds almost guarantees flows into the American currency
An excellent March US payroll report helped keep the USD/JPY stable at its 12-month high on Friday after a week of gains.