The information provided is of general nature only and does not take into account your personal objectives, financial situations or needs. Before acting on any information provided, you should consider whether the information is suitable for you and your personal circumstances and if necessary, seek appropriate professional advice. All opinions, conclusions, forecasts or recommendations are reasonably held at the time of compilation but are subject to change without notice. Past performance is not an indication of future performance. Go Markets Pty Ltd, ABN 85 081 864 039, AFSL 254963 is a CFD issuer, and trading carries significant risks and is not suitable for everyone. You do not own or have any interest in the rights to the underlying assets. You should consider the appropriateness by reviewing our TMD, FSG, PDS and other CFD legal documents to ensure you understand the risks before you invest in CFDs. These documents are available here.
Any references to Australian or international shares, sectors, indices, ETFs, crypto-related stocks or other instruments are provided for market commentary and watchlist purposes only and do not constitute a recommendation, offer or solicitation to buy, sell or hold any financial product or adopt any investment strategy. International markets may involve additional risks, including currency fluctuations, regulatory differences, market structure differences, reduced liquidity and higher volatility. Company-specific, sector-specific and macroeconomic risks may also affect performance.
Commentary on geopolitical developments, economic data, central bank decisions, earnings, policy changes and other global or financial market events is based on information available at the time of publication and may change without notice. Such events can lead to sudden market moves, price gaps, reduced liquidity, wider spreads and increased volatility, particularly in leveraged products such as CFDs. Forward-looking statements, expectations and scenario analysis are inherently uncertain and should not be relied on as guarantees of future market behaviour or outcomes.
Japanese Yen: BoJ policy and capital flows underpin gains against US Dollar - Commerzbank
Volkmar Baur at Commerzbank highlights a notable Japanese Yen recovery, with USD/JPY dropping below 157 for the first time since early September. He points to Japanese inflation stabilizing above 2% and a more responsive Bank of Japan (BoJ), alongside sustained repatriation of Japanese capital and foreign buying of Japanese bonds, as factors likely to support JPY over the coming months.
Yen gains on policy and flows
"The Japanese yen strengthened significantly at times yesterday, with USD/JPY falling below the 157 mark for the first time since Scott Bessent’s verbal intervention in early September."
"Inflation in Japan appears to be settling around 2% and is even showing signs that it could rise further. While headline inflation came in at 2.1% this morning, the core rate excluding energy and fresh food rose to 2.3%. And unlike in the past, the Bank of Japan increasingly appears willing to respond appropriately to these developments."
"At least that was the message on Wednesday, when Deputy Governor Himino told parliament that inflation was close to the 2% target and that normalising monetary policy too slowly could therefore harm the economy."
"In the week to 17 October, Japanese investors sold foreign bonds for the fifth consecutive week and repatriated the proceeds. At the same time, foreign investors were net buyers of Japanese bonds for the third consecutive week."
"Both developments, further monetary policy normalisation by the Bank of Japan and capital flows increasingly returning to Japan, are likely to continue over the coming months and should provide further support for the JPY."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)
Related Articles
