- Analytics
- News and Tools
- Market News
- Yen does not have many fans at the moment – Commerzbank
Yen does not have many fans at the moment – Commerzbank
Ulrich Leuchtmann, Head of FX and Commodity Research at Commerzbank, analyzes JPY outlook as markets assess what the BoJ actually means with its cryptic guidance.
Does the BoJ know how to rip off a plaster?
After the fierce market reactions to the recent change in YCC, it was surely clear to even the last Japanese monetary policymaker that a further increase in the yield ceiling would have led to fierce market reactions once again. That is the price to be paid by a central bank that abandons a monetary policy position in which it has been entrenched for ages.
But in my opinion, it is extremely short-sighted to avoid this market reaction by creating monetary policy ambiguity. Because in the end, monetary policy only works if it is understood.
To me, the BoJ seems like a child who needs to pull off a plaster and doesn't dare to get it done in one pull. Instead, it plucks it off piece by piece, which is ultimately much more unpleasant. No one should be surprised that the Yen does not have many fans at the moment.
© 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
