Volkmar Baur from Commerzbank analyzes the recent polls in Japan, which show a decline in the ruling Liberal Democratic Party's (LDP) approval ratings ahead of the upcoming elections. The weakening support for Prime Minister Takaichi could impact the Japanese Yen's strength. The report highlights that the JPY has gained against the USD amid these political uncertainties.

Political landscape affecting JPY

"These polls therefore show that, at least in the proportional representation election, the LDP cannot necessarily expect to win more votes and thus more seats in the House of Representatives than in the last elections in 2024."

"According to these polls, the LDP's chances of winning an absolute majority have therefore declined again, and with them the likelihood of significant fiscal expansion after the election."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)