USD/JPY will likely be falling when BoJ moves to abandon YCC – MUFG

By TradeRadius | Mon, 29 May 2023 09:50:42 UTC

img for post

Economists at MUFG Bank discuss when the Bank of Japan could remove YCC as a policy tool.

Falling inflation and yields globally will likely offer the BoJ the time to act

“Market expectations on the timing of a YCC change have been pushed back following Governor Ueda’s dovish communications following his first BoJ meeting in April. But we maintain that YCC has passed its sell-by-date and while it remains unclear whether price stability at 2% can be achieved, the BoJ will still move to widen the band or scrap it completely.”

“The BoJ will want to avoid a similar outcome to the RBA and will likely move to abandon YCC at a point when markets are not speculating on a move. That could mean YCC ends as global yields decline later this year as inflation risks recede. In such a scenario, USD/JPY will likely be falling.”

“The BoJ may well decide to scrap YCC when the markets least expect it and speculation is low. So falling inflation and yields globally will likely offer the BoJ the time to act.”  

Share

Partners News

Volkswagen dumps jailed Audi CEO

Volkswagen has severed ties with suspended Audi CEO Rupert Stadler, who has been jailed since June in connection with an emissions investigation. Stadler has left the board of management of Audi parent company Volkswagen (VLKAF) and stepped down as chairman of the premium brand’s management b...

By TradeRadius | 42 Minutes Ago

> >

The internet industry is suing California over its net neutrality law

The lawsuit, filed on Wednesday by major trade groups representing broadband companies, is the second major lawsuit filed against the state over the law — the first was brought by the Justice Department.

By TradeRadius | 42 Minutes Ago

> >

Asian Markets Trade Higher In Thin Holiday Trades

Asian stock markets are mostly higher in thin trading on Friday when most of the markets are on Good Friday holiday, following the mixed cues from Wall Street overnight, as traders were reluctant to make significant moves ahead of the release of US inflation data later in the day that could...

By TradeRadius | 1 Hours Ago

> >

Lower government borrowing in H1 to cool bond yields

On Wednesday, the Reserve Bank of India (RBI) said the Centre would borrow ₹7.5 lakh crore through bonds in the first six months of FY25. Bond sales in April-September represent 53% of the government's gross borrowing target of ₹14.13 lakh crore for the next fiscal, much lower than 63% last year.

By TradeRadius | 2 Hours Ago

> >

Mpox infections double last year's rate

March 28 (UPI) -- Mpox cases in the U.S. are double what they were last year at this time, and transmission rates are on the rise while vaccination rates are lagging, experts said Thursday. So far this year, 511 cases have been reported through March 16, according to the Centers for Disease...

By TradeRadius | 3 Hours Ago

> >

Japan Retail Sales Jump 4.6% On Year In February

The total value of retail sales in Japan was up 4.6 percent on year in February, the Ministry of Economy, Trade and Industry said on Friday - coming in at 12.937 trillion yen. That beat forecasts for an increase of 2.8 percent following the downwardly revised 2.1 percent increase in January...

By TradeRadius | 3 Hours Ago

> >

Japan Jobless Rate Climbs To 2.6% In February

The unemployment rate in Japan came in at a seasonally adjusted 2.6 percent in February, the Ministry of Internal Affairs and Communications said on Friday. That exceeded expectations for 2.4 percent, which would have been unchanged from the January reading.

By TradeRadius | 3 Hours Ago

> >

3 presidents, celebrity performances and $25 million: Biden rakes in cash at NYC fundraiser

They also sat for a discussion with Biden's campaign manager, Julie Chavez Rodriguez, which was streamed to grassroots donors. The presidents talked about re-election efforts — both Clinton and Obama served two terms — as well as lighter topics, like favorite ice cream favors.

By TradeRadius | 3 Hours Ago

> >

Charge of £90 to clear problem debt axed for poorest

Charities had warned some people struggling with debt could not afford to apply to clear it.

By TradeRadius | 4 Hours Ago

> >

Ukraine urges India to rethink ‘Soviet legacy’ of Russia ties

Foreign Minister Dmytro Kuleba visits New Delhi in an effort to draw it away from Moscow

By TradeRadius | 4 Hours Ago

> >