- Analytics
- News and Tools
- Market News
- More unwinding of JPY carry trades at the BOJ meeting – DBS
More unwinding of JPY carry trades at the BOJ meeting – DBS
USD/JPY plunged from 162 to 152 in the fortnight to July 25. The sell-off was triggered by the third decline in US CPI inflation fuelling bets for a Fed cut in September, suspected currency interventions from the Bank of Japan, and US Republican presidential candidate Donald Trump’s decrying of the JPY’s massive weakness, DBS senior FX strategist Philip Wee notes.
JPY carry trade continues to unwind
“Japan sees an opportunity to reverse the JPY’s weak fortunes at this week’s BOJ-FOMC meetings on July 31. The Liberal Democratic Party believes that the JPY’s multi-decade lows sank the Kishida Cabinet’s approval ratings by adding to the consumers’ cost of living crisis and hurting small and midsize companies via higher raw and energy prices.”
“Over the weekend, Japan successfully pushed for the G20 joint communique to include the commitment against excessive foreign exchange volatility. Given the potential for a dovish Fed tilt, the BOJ will need to heed the call by LDP Secretary-General Toshimitsu Motegi for an unequivocal resolve to normalize monetary policy.”
“We see the BOJ halving its monthly JGB purchases to JPY 3 trillion but markets want the BOJ to hike rates a second time this year.”
© 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
