Additionally, the recent agreement between Israel and Hamas to pause fighting has limited the upside potential for the JPY as a safe haven currency. Interestingly, the recent weakening of the USD may reduce the need for the Bank of Japan (BOJ) to intervene in the foreign exchange (FX) markets if this trend continues. Furthermore, Japanese…
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‘Central bank watching’ will be the name of the game this week, with financial markets remaining highly sensitive to any shifts in the interest rate outlook, particularly given the recent ramping up of energy prices. The move higher in energy costs was born out in the US inflation data last week, which could nudge the…
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As a result, Japanese 10-year bond yields saw the highest increase since 2014, while the USD/JPY currency pairing plunged to a new low. Investors will be waiting to gain more information from U.S. inflation data, which is due to be released from the Federal Reserve Bank later this week. Don’t miss out the latest news,…
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Bank of Japan Governor Haruhiko Kuroda said low profitability at financial institutions could start a new financial crisis, offering his strongest warning to date of the demerits of aggressive monetary easing pursued by major central banks, Business Insider reported earlier today. Mergers and consolidation may be among options for financial institutions to boost profitability, Kuroda…
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The European Central Bank and Bank of Japan are embarking on a research project looking into the use of distributed ledger technologies for market infrastructure. In a speech this week, ECB executive board member Yves Mersch stressed that the bank cannot "at this stage" consider basing its market infrastructure on DLT because the technology is…
Read moreOne thing is sure: it is very difficult for the Bank of Japan to surprise today’s markets.
Read moreJapan’s government bond yields sank below zero for the first time ever which caused a yield drop as low as 0.015%. In the first days after Brexit, the yen was often the initial choice for investors, even more than the US dollar. Global markets reacted expeditiously after two British asset managers blocked investors from pulling…
Read moreVolatility hit Asian equity and currency markets on Friday following a surprise overnight move by the Bank of Japan to adopt negative interest rates. Here are some notes on the move by a number of leading currency analysts: [divide] Saxo Bank / TradingFloor.com, John J. Hardy - Bank of Japan Governor Kuroda was known for liking…
Read moreMonex Group, Inc. (TYO:8698), the Japan-based group of Forex brokers, this morning published its 16th Global Retail Investor Survey. The survey, conducted in late February and early March 2015, covered the opinions of retail investors in Japan, China (Hong Kong) and the United States on global Forex and stock markets for the following three months.…
Read moreFederal Reserve’s tapering will be the theme to spark volatility and volume growth in 2014 Most participants in the FX markets will mark 2013 as the year when the carry trade has returned. And the funding currency of choice is the same as before 2008 – the Japanese Yen. Ultra low interest rates coupled with…
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