FX Outlook: All Eyes on Japan

In this video, Rob, Founder and Chief Impact Officer from GoodFX, sits down with Simon French, Chief Economist and Head of Research from Panmure Liberum, to unpack the complex and evolving dynamics of Japan's economy, and why they matter for global investors, CFOs, and strategists alike.

From yen weakness to rising inflation and the unravelling of decades-long financial orthodoxy, Simon breaks down the critical shifts in layman's terms, offering a timely look at how Japan’s story could reshape global markets.

Watch the full video below...

Key Themes Discussed:

• Japan’s Economic Backdrop: A 30-year experiment in ultra-loose monetary policy, aging demographics, and structural stagnation.

• Turning Point for the Yen: After decades of deflation, Japan is now seeing sustained inflation, prompting policy shifts and a reassessment of its debt markets.

• The Carry Trade Unwind: Why a stronger yen and rising Japanese yields could unwind decades of global capital flows and pressure Western debt markets.

• Geopolitics & Debt Weaponisation: How tariffs, trade balances, and political cycles are intersecting with capital flows and bond market volatility.

• Central Banks Under Pressure: With Japan and the US on divergent paths, what options do central banks have in a more fragmented global economy?

• The Question of ‘Normalisation’: Is Japan returning to normal—or entering a new chapter in global debt experimentation?