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No BoJ Action just a Survey

Central Banks are thinking outside the box this week, with one aim in mind, and that’s to cheapen their own currency. Unless of course you happen to be in the emerging market category. On Friday morning there were rumors that the SNB was about to change its floor. This certainly spooked an already nervous market that has been busily applying risk aversion trading strategies for most of the week. “Viral” is a cheap way to get your business concluded. Japan on the other hand uses surveys.

On Thursday the BoJ sent out a questionnaire to major banks asking whether they can help it intervene in the currency markets overseas. This action certainly caused a reaction amongst market participants.

The fundamental arguments for JPY appreciation remain very much intact – Japan is “a current account surplus economy with a large surplus net international investment position”. The survey represents a new tactic to rein in the yen. Japan has intervened four times in the past year with varying degrees of success. To curb the value of the yen that’s seen as a safe haven amid global turmoil is difficult. The strength of it continues to cause serious harm to the country export dependant economy. At least the MoF and BoJ can control their perception of being seen to be doing the right thing!  


Below are some other highlights of the week:




Other Links:
EUROPE Week in FX [1]
Americas Week in FX [2]



  • Economic, business and confidence facts come from the USD, CHF and NZD
  • Housing and building data is reported from the US, AUD, NZD and GBP
  • CAD gives us her monthly GDP release
  • Manufacturing PMI is delivered from CNY, USD and GBP
  • AUD reports private Capital Expenditure and Retail Sales
  • GBP has its inflation hearings
  • The week ends with the employment situation in CAD and USD


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

Latest posts by Dean Popplewell (see all [7])