- Analytics
- News and Tools
- Market News
- USD/JPY is understandably recovering some lost ground – MUFG
USD/JPY is understandably recovering some lost ground – MUFG
The renewed bounce in USD/JPY was in part triggered by comments from Governor Ueda at the G20 summit in India on Tuesday. Economists at MUFG Bank analyze the pair’s outlook.
Reduced speculation over a YCC change next week
Governor Ueda did acknowledge that market functioning has improved but we already know that and really the decision on changing YCC will at this juncture be more based on the fundamentals rather than the functioning of the markets, although future risks of dysfunctional markets could be part of the decision-making process.
The market reaction to the Ueda comments suggests reduce speculation over a YCC change next week although we would argue that the forecast update could still provide the justification and for the BoJ changing YCC when yields are not under upward pressure and threatening the 0.50% band limit is a more ideal time than the opposite.
CPI data on Friday will remain key and the data could prompt renewed speculation once more. But in a backdrop of improved risk appetite and soft-landing optimism, USD/JPY is understandably recovering some lost ground.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
