Japan\u2019s headline inflation fell to 2.2%, and the so-called \u2018core-core\u2019 (ex-fresh food and energy) fell to 2.2% after a third monthly increase of 0.2%. If inflation is going to settle around 2%, rather than fall all the way back to the 10-year average (just over 1%), there is no reason to delay the demise of negative interest rate and yield curve control policies. Especially given that the Yen has lost a third of its value since the start of the Covid pandemic, and USD\/JPY remains close to its post-1990 high.<\/p>\n<\/blockquote>\n
\nThis pair has the capacity for huge and persistent overshoots. CFTC data suggest that under four weeks before the crucial BoJ meeting, when one of the largest US\/Japanese policy divergences we have seen will probably start to unwind, futures traders remain doggedly short the Yen. Will they be proved geniuses, or fools because a change of BoJ policy direction, ahead of a likely change of Fed policy direction later this year, signals a turn in USD\/JPY? We\u2019re in the latter camp \u2013 how could we not be? What (if anything) am I missing?<\/p>\n<\/blockquote><\/div>\n","protected":false},"excerpt":{"rendered":"
Share: Kit Juckes, Chief Global FX Strategist at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale, analyzes Yen\u2019s outlook after inflation in Japan surprises to the topside. Inflation demands BoJ action Japan\u2019s headline inflation fell to 2.2%, and the so-called \u2018core-core\u2019 (ex-fresh food and energy) fell to 2.2% after a third monthly increase of 0.2%. If inflation is going to settle […]<\/p>\n","protected":false},"author":2,"featured_media":13094,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[299,201,367,248,251,246,257,255,388,250,252,247,253,249,275,256,254],"class_list":["post-255049","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-banks","tag-blockchain","tag-boj","tag-bsc","tag-chainlink","tag-coin","tag-cryptocurrency","tag-gta","tag-inflation","tag-looks-rare","tag-oracle","tag-polygon","tag-quickswap","tag-safe-moon","tag-usdjpy","tag-wallet","tag-wordpress"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/255049","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=255049"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/255049\/revisions"}],"predecessor-version":[{"id":255050,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/255049\/revisions\/255050"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/13094"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=255049"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=255049"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=255049"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}