The yen sharply strengthened

June 10, 2015

Who would have thought that for the correction of the yen from the multi-year lows anti-inflation comments will be enough.

On Wednesday, the Japanese yen sharply strengthened in trading. Correction of the long-term low started on Monday, but enthusiasm by itself was not enough. And this morning there was a reason to continue selling in the USD/JPY pair.

A member of the Board of the Bank of Japan Mr. Sato said on Wednesday that inflation at 2% - is not necessarily the goal in future years. According to him, the delay in the implementation of this goal does not pose any major problem. In addition, there is no conclusive evidence that inflation expectations will rise.

Sato also said that the current monetary policy should not be reviewed in an automated manner only because the Central Bank’s desired period of two years has passed.

The speech was convoluted, that's true, but the market realized what it wanted to understand for a long time: after two years, which the Bank of Japan has taken as a provisional guideline for the implementation of monetary policy, no one will turn off the QE program quickly and painfully. The economy was "injected" with too much money to give up the inflation target.

But in addition, it is necessary to understand that to achieve the inflation target - is only half the battle, the most simple and easy. The hardest thing is to keep inflation at the proper level. Preferably, with a healthy mechanism in the form of consumer demand and the growth of producer price indices.
 
RoboForex Analytical Department

Publication source
RoboForex information  RoboForex reviews

January 16, 2017
GBP under pressure ahead of May speech
A speech from Theresa May is one of the key events for financial markets this week and certainly the most relevant for the British pound. Primie Minister is about to deliver a speech on UK’s stance and conditions ahead of the triggering article 50 and beginning the Brexit negotiations...
January 13, 2017
Yellen (Fed) with a neutral message but USD starts to fight back
USD was taking damage from the Wednesday Donald Trump specch until yesterday evening. Lack of details on economic and fiscal agenda at the first press conference of the president-elect caused a correction on equities boosted since the US elections...
January 12, 2017
Are OPEC cuts going to be in vain?
As OPEC and its biggest partner Russia have agreed to curtail Oil output prices, this offers the strongest catalyst of recovery since the start of the fight for market share back in 2014. Despite the initial market “hurrah” which helped the prices to get over the $50 mark...

OctaFX Rating
Vantage FX Rating
HotForex Rating
Tickmill Rating
Z.com Trade Rating
FXCM Rating

Binary Brokerz Rating
24option Rating
Beeoptions Rating
TopOption Rating
365BinaryOption Rating
IQ Option Rating