The post Japanese Yen: Inflation curve debate shapes outlook – Rabobank appeared on BitcoinEthereumNews.com.
Rabobank’s Senior FX Strategist Jane Foley discusses the Japanese Yen’s (JPY) recent strength and questions whether the Bank of Japan (BoJ) is truly behind the inflation curve. Foley highlights JGB auction strength, rising foreign ownership of Japanese debt, and BoJ inflation forecasts, while stressing that fiscal concerns and cautious rate hikes continue to limit a sustained JPY recovery. BoJ credibility and JPY performance “In August last year, US Treasury Secretary Bessent stated that the BoJ is “behind the curve on inflation” and indicated that the Japanese monetary authority would be hiking interest rates. At that time Bessent stated that there was risk of “leakage,” meaning that higher JGB yields could potentially drive up those in other bond markets including US treasuries. Moreover, since Japanese investors are the largest foreign holders of US debt, the US Treasury is l
The post Japanese Yen stays subdued below 161.90 as Fed caution limits Dollar weakness appeared on BitcoinEthereumNews.com.
USD/JPY trades slightly negative below the 161.90 area as the Japanese Yen (JPY) finds modest support, while the US Dollar (USD) remains underpinned by cautious remarks from New York Fed President John Williams and lingering inflation concerns. The latest United States (US) labor data showed that the ADP Employment Change 4-week average eased to 21K from 24.25K, pointing to a softer pace of private hiring. The figure suggests that labor market momentum is cooling, which could normally weigh on the Greenback. However, the USD avoided a deeper pullback as investors continued to price in a Federal Reserve (Fed) focused on supressing inflation. Williams said the US economy continues to expand at a steady, trend-like pace, while the labor market remains stable. However, he warned that inflation is still elevated, reinforcing the need for the Fed to keep policy restrict
The post Japanese Yen: Near historic lows against US Dollar – Scotiabank appeared on BitcoinEthereumNews.com.
Scotiabank strategists Shaun Osborne and Eric Theoret highlight the Japanese Yen (JPY) as the best-performing G10 currency on the day, though gains versus the US Dollar (USD) are marginal. Wage data disappointed but remains historically elevated, while USD/JPY trades just below its highest level since 1986 around 162.80. The RSI has eased from overbought territory but stays firmly bullish near 60, underscoring still-strong upside momentum. Yen stabilizes but trend still strong “The yen is outperforming all of the G10 currencies into Tuesday’s NA session, despite its marginal 0.1% gain vs. the USD.” “The stabilization is welcome following Monday’s decline that had had almost fully retraced last week’s (allegedly intervention-driven) rally.” “Labor cash earnings (wage) data released overnight disappointed relative to expectations while remaining elevated at the upper end of their
The post Japanese Yen: Weak against US Dollar with limited upside – NBC appeared on BitcoinEthereumNews.com.
National Bank of Canada ’s (NBC) Stéfane Marion and Kyle Dahms highlight the Japanese Yen (JPY) trading near multi-decade lows around 161 per USD, even as long-end yield differentials move in Japan’s favour. They see stretched short yen positioning, rising intervention risk near 162–163, and gradual BoJ normalization limiting further weakness. Their forecast has USD/JPY easing to 158 by year-end and toward 155 by mid-2027. Intervention risk caps yen losses “The yen remains near multi-decade lows despite some improvement in long-end yield spreads. Cautious BoJ normalization and fiscal concerns continue to limit support, while intervention risk around the 162–163 area and crowded yen shorts make further yen weakness look less likely. A sustained yen recovery likely requires lower U.S. yields or a more forceful BoJ.” “Positioning makes the setup more asymmetric. Non-commercial spec
The post Japanese Yen: Japan denies rate-pressure claims as data mixed – BNY appeared on BitcoinEthereumNews.com.
Geoff Yu notes Japan’s Growth Strategy Minister Minoru Kiuchi rejected reports that the government is trying to push interest rates lower or pressure the Bank of Japan (BoJ). He emphasizes continued coordination with the BoJ, while recent data show firm nominal wage gains but weaker real earnings, soft household spending, and improving coincident indicators, with the Japanese Yen briefly firmer versus the Dollar. Policy stance steady, data send mixed signals “Japan’s Growth Strategy Minister Minoru Kiuchi has rejected media reports that Prime Minister Sanae Takaichi’s government is trying to push interest rates lower, saying there is “absolutely no truth” to claims that fiscal expansion is aimed at pressuring the BoJ.He said the omission of “fiscal consolidation” from the draft basic policy guidelines was not intended to weaken fiscal discipline, but to present fiscal susta
The post Japanese Yen: Fiscal unease and BoJ path – MUFG appeared on BitcoinEthereumNews.com.
MUFG’s Lee Hardman notes the Japanese Yen (JPY) has firmed slightly, pulling USD/JPY back from 162.18 to 161.68, as comments from Growth Strategy Minister Minoru Kiuichi attempt to calm fiscal worries. He highlights volatile long-end JGB trading, renewed concern over Japan’s multi‑year investment plans, heavy leveraged fund short Yen positioning, and expectations for a Bank of Japan (BoJ) rate hike by September supporting the Yen. Fiscal signals, JGBs and BoJ outlook “The yen has strengthened modestly overnight resulting in USD/JPY dropping back to a low of 161.68 after hitting a high of 162.18. The yen has derived some support from comments from Japan’s Growth Strategy Minister Minoru Kiuichi who stated that “there’s absolutely no truth to reports suggesting that the government is encouraging low interest rates as part of its fiscal expansion policy. If our intentions haven’t been accurately
The post New Zealand Dollar: RBNZ seen starting rate hikes – BBH appeared on BitcoinEthereumNews.com.
Brown Brothers Harriman’s (BBH) Elias Haddad highlights the Reserve Bank of New Zealand (RBNZ) policy decision as the key domestic event, with a first 25 bps hike to 2.50% expected. He notes this could trigger a knee‑jerk New Zealand Dollar (NZD) upswing, supported by improving business and consumer confidence. Markets price roughly 70% odds of a hike and nearly 100 bps of tightening over the next year. Rate hike expectations support NZD “The RBNZ policy rate decision is the domestic highlight (10:00pm New York, 3:00am London).” “We expect the RBNZ to deliver a first 25bps rate hike to 2.50% which can trigger a kneejerk NZD upswing.” “The swaps curve implies 70% odds of a 25bps rate hike today and a total of nearly 100bps of tightening over the next twelve months. That’s roughly in line with the RBNZ policy path projection published in May.” “New Zealand business and consumer confidenc
Persistent high energy costs and potential ECB rate hikes could strain economic recovery, impacting inflation, investment, and market stability.
The post ECB’s Isabel Schnabel warns peace hasn’t fixed energy prices, signals more rate hikes ahead appeared first on Crypto Briefing.
Warsh's approach could lead to increased market volatility as investors adjust to less predictable Fed policies and potential rate hikes.
The post Federal Reserve Chairman Kevin Warsh shifts investor expectations with key remarks on price stability appeared first on Crypto Briefing.
