Bank of Japan (BoJ) news

The Bank of Japan (BoJ) is the central bank of Japan. It conducts monetary policy to achieve price stability and financial system stability. The BoJ employs various tools, including quantitative easing and yield curve control, to influence economic activity and promote sustainable growth in Japan.

No major risk-off after BoJ’s creative YCC flexibility tweak

Bank of Japan maintained its ultra-loose monetary policy but issued a lukewarm hawkish statement to introduce a “flexible” Yield Curve Control programme on the 10-year JGB yield. JPY strengthen but did not lead to a sell-off in other Asian benchmark stock indices. Nikkei 225 has managed to trim its intraday loss of -2.60% and ended with a smaller magnitude of -0.4%. Japanese banks outperformed; the TOPIX-17 Banks ETF rallied by +4.70%. The new YCC with “greater flexibility” may reduce specul

28-07-2023 04:48 GMT by Kelvin Wong

USD/JPY softens as yen hedges surge ahead of BOJ

Rate cut odds for the December FOMC meeting now stands at 15.1% vs 16% yesterday Protection against yen strength rises to a four-month high Bearish tones emerging for USD/JPY as top Ichimoku cloud tested The Japanese yen is catching modest bids here as stocks soften on Microsoft’s disappointing AI outlook and as pressure builds for the BOJ to tighten. Microsoft’s results were adequate, but that won’t be enough to keep the mega-cap tech/AI trade going. Profit taking will likely remain the

26-07-2023 10:03 GMT by Edward Moya