FX intervention usually meets with a sceptical response. It has been no different for the Bank of Japan as its recent efforts to strengthen the yen have been dismissed...
Incessant yen weakness seems to have finally snapped the patience of the Japanese authorities as it looks as if the Bank of Japan intervened on behalf of the Ministry of...
Sooner or later, it looks as if Japanese policymakers could intervene in the FX market by using a three-step process.
The Japanese Ministry of Finance and the Bank of Japan (BoJ) seem to be readying themselves for currency intervention as the yen hits its lowest level in 34-years...
The Bank of Japan lifted the short-term policy rate for the first time in seventeen years last week but the yen still languishes close to its weakest level against...
Last week, we saw the third attempt by US dollar/yen to really break through the 150 level that has proved an insurmountable barrier twice before since October 2022.
Currency markets have been remarkably stable; particularly the key currency pairing, euro/dollar. But why is that, and is it likely to persist?
The FX carry trade has performed well in the first two months of the year helped, undoubtedly, by the persistence of low rates in one of the main funding currencies –...
The US dollar has risen against the euro and the pound even though policy rate differentials have been very stable, particularly with respect to the UK.
Where is the US dollar likely to trade against other G10 countries over the long haul?
While the yen may well remain far more volatile than the euro this year, and probably more volatile than most other currencies, it won’t be the weakest currency in 2024.
In 2024, the BoJ seems likely to start the process of lifting policy rates and if we assume that most other G10 central banks start to cut, there’s a good chance for the...
It is future total factor productivity (TFP) that’s key; not what’s happened in the past when it comes to currencies.
The US dollar might be the most important currency in most people’s books but, right now, the yen is the dominant one. Hence, what happens to the yen could easily...
US treasury bonds are deemed by many to be the safest of safe assets. But this seems to be open to question at the moment.
What does the inability of US dollar/yen to move too far from 150 tell us about the state of the currency market?
Matsuo Kanda, Japan’s Vice Minister for International Affairs, and the lead government spokesperson on the yen said just recently that the currency is still perceived as...
With geopolitical risk very elevated in the Middle East right now, we might wonder whether the tensions will spillover to create volatility in the FX market.
G10 FX volatility remains low with implied one-month euro/dollar volatility below 7% right now, or around a half of the level that we were seeing a year ago.
Many have commentated in the past about the similarities between China now and the post-boom Japanese economy.
Voters in Thai Nguyen province feel that the province's actual demand for social housing is minimal, resulting in land waste and issues managing the land...
Dollar/yen has risen into the region that prompted the Bank of Japan to intervene in the FX market last autumn. Hence it seems that intervention was only successful for...
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