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What will the BoJ do?

Recent comments by Japanese Finance Minister Azumi suggest that the authorities have grown more concerned about JPY strength. Just look at how many time authorities have been on the wires this week trying to talk the currency down. New WWII record yen highs have been more frequent with the speculation market heavily long dollars.

This week the BoJ topped up its asset purchase program by ¥5t. Thus far, it’s had minimal effect on its currency value. The JPY strength is a consequence of the country’s inability to recycle its current account surplus in the midst of global uncertainty and persistently low G10 yields. Their asset purchase fund requires additional funding to improve the monetary base relative to other Central banks programs. To get the market’s attention, measures similar to SNB’s actions are required. Direct currency market intervention will have an immediate impact. Then apply it again and then again.

Below are some other highlights of the week:


ASIA

 

EUROPE Week in FX [1]

AMERICAS Week in FX [2]

 

WEEK AHEAD

  • Market gets rate and policy announcements from the RBA, FED and ECB
  • GDP data from CAD and GBP
  • Manufacturing releases from CNY, GBP and USD
  • Employment changes and costs, NZD, USD and CAD
  • Building consent and permits from NZD, GBP and CAD
  • Retail Sales comes from AUD
  • Ending the week with CAD Ivey PMI

 

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Dean Popplewell

Dean Popplewell [7]

Vice-President of Market Analysis at MarketPulse [8]
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell
Dean Popplewell

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