We see USD/YEN ending Q2 at 126 (140 by Dec 2016)

Genevieve Signoret

Currencies

Merely to reflect emerging data trends, we revise down our outlook for the USD/YEN to $1.00=¥126 for Q2.

Note that our Mexico peso forecast of US$1.00=MXN16.00 for quarter 3 is our way to signal that we expect the peso to dip sharply some time in quarter 3. It may actually already start to recover in the second half of September, after the Fed announces its monetary policy decision on the 17th.

To view these forecasts in the context of our larger central-scenario story, we urge you to open up on your screen our full global macro forecast tables.