Note that 🇯🇵Finance Minister Suzuki is ALSO talking WHILE 🇯🇵BOJ Gov Ueda holds his press conference
Dual policy heads simultaneously trying to “net-out JPY↓ taking place (or, allow for Ueda to deliver dovish hike message)
Incredible - used to be 🇯🇵MOF yentervention waits to meddle ~10 mins AFTER BOJ presser (verbally or actually), guess it’s now side by side real time hedging practices (whether effective or not).
Either way- just be aware that’s also going on right now, & not just all “BOJ Ueda’s FX markets”
I like it that your views tend to be grounded in an awareness of the ambiguity and vague nature of BOJ actions. Nuance isn’t fashionable any more but it’s still important here. Thanks
Multiple moving parts, may do some ‘unwinding’ myself and go long that Prado import I’ve always had my eye on if the GBP/JPY keeps going. So I can be long Toyota stocks, long cars and short certain currency pairs…till tomorrow as you say 😅. Good outcome net net if they manage this ‘balanced exit’ [155 tail risk?]. Can’t say it’s been the easiest ride up here 🎢
So far looks like a very timid policy change as you have mentioned. Just a marginal change to from -10/0 to 0 to + 10bps. ycc still in place. Yen is going to test them now above 150. Fed will have to stay tight because of inflation. I don't see how a weakening yen will help them achieve their purposes.
Note that 🇯🇵Finance Minister Suzuki is ALSO talking WHILE 🇯🇵BOJ Gov Ueda holds his press conference
Dual policy heads simultaneously trying to “net-out JPY↓ taking place (or, allow for Ueda to deliver dovish hike message)
Incredible - used to be 🇯🇵MOF yentervention waits to meddle ~10 mins AFTER BOJ presser (verbally or actually), guess it’s now side by side real time hedging practices (whether effective or not).
Either way- just be aware that’s also going on right now, & not just all “BOJ Ueda’s FX markets”
+FOMC still on deck
I like it that your views tend to be grounded in an awareness of the ambiguity and vague nature of BOJ actions. Nuance isn’t fashionable any more but it’s still important here. Thanks
Multiple moving parts, may do some ‘unwinding’ myself and go long that Prado import I’ve always had my eye on if the GBP/JPY keeps going. So I can be long Toyota stocks, long cars and short certain currency pairs…till tomorrow as you say 😅. Good outcome net net if they manage this ‘balanced exit’ [155 tail risk?]. Can’t say it’s been the easiest ride up here 🎢
So far looks like a very timid policy change as you have mentioned. Just a marginal change to from -10/0 to 0 to + 10bps. ycc still in place. Yen is going to test them now above 150. Fed will have to stay tight because of inflation. I don't see how a weakening yen will help them achieve their purposes.
“Some” unwinding underway then…😆
yes, market went in long Yen so they are unwinding now.