Fukui's comments are positive on a shift in policy, and we may even get rate hikes later this year. That is positive for the yen.
Fukui's comments are positive on a shift in policy, and we may even get rate hikes later this year. That is positive for the yen.
The domestic market view is that Japan's monetary policy will be unchanged at this meeting and there won't be many signals in governor Fukui's speech for foreign investors trying to find some clues.
Few market participants were willing to take fresh positions ahead of Fukui's press conference.
Fukui's comments were just very hawkish overall. There's certainly room for short-term yields to rise and the yield curve to flatten more as the market factors all this in.
The yen may be well supported until Fukui's press conference. Expectations of his hawkish comments on a policy shift are not likely to fade away.
Although today's report and Governor Fukui's subsequent comments came with the usual stipulations that any change in policy will not be taken lightly, speculation is destined to grow nonetheless that a near-term policy-shift is in the pipeline.
Basically, the market mood hasn't changed from yesterday. Investors are taking a wait-and-see stance before Fukui's press conference.
Fukui's remarks today fueled speculation that the end of the policy could come as soon as March. With consumer prices projected to keep rising this year, the BOJ may raise rates as soon as October.
Yields are set to climb as we see signs of inflation. Fukui's comments assured us he has not given up the plan to shift monetary policy.
Fukui's latest comments have been laying the groundwork for a change in policy. A lack of strengthening of his comments could lead to some yen downside.
The yen got its boost because Fukui's comments signaled the moment of truth is approaching. An end to the super-easy policy in April could be a done deal, and the bank may raise rates in the last six months of 2006.
Fukui's comments today struck a bit of a chord with the market and it kicked off a huge yen move.
Momentum for the yen is good. Fukui's comments and this newspaper report fed speculation about a March policy move, increasing the chances of a rate hike by the end of the year.
Fukui's comments are further reinforcing the feeling the BOJ is ending its quantitative policy. It's the vote of confidence in the economy by the BOJ.
© 2020 Inspirational Stories
© 2020 Inspirational Stories