France and Japan Agree on Undesirable FX Moves

Japanese Prime Minister Shinzo Abe and French President Francois Hollande agreed that sudden moves in foreign exchange rates were undesirable, media reports said, as the yen rose to 18-month highs against the dollar.

The two leaders, after a meeting late on Monday in Paris, also agreed that the Group of Seven (G7) countries should be “flexible” in their fiscal spending policies to deal with increasing uncertainty in the global economy, Jiji and Kyodo agencies reported.

The G7 leaders are due to meet in Ise-Shima, Japan on May 26-27.

The yen rose to 18-month highs against the dollar after the BOJ kept monetary policy steady last week, defying market expectations that it would expand stimulus to protect Japan’s fragile economic recovery.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza