Tagged: BOJ

The yen strikes out on its own

Just in case you were in any doubt that people don’t have as much short JPY as they would like, note that even a fall in the Nikkei overnight couldn’t stop the march of USD/JPY: The option market  is partly to blame for this. There are a multitude of option barriers that have been lurking,…

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The Day Today 19 Nov 2014

* BOJ vote 8-1 this time to keep QQE stimulus (Kiuchi the only dissenter), up from 5-4 last time and a sign that Kuroda is winning the argument * Moody’s warns the RBA that their model for how house prices affects consumption is outdated, and that consumers could be hit by much more than the RBA…

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The Day Today 18 Nov 2014

* Abe to announce today that he will announce 18month delay to sales tax hike and intends to dissolve parliament for a Dec 14th election, says the Nikkei * Draghi takes the cat firmly out of the bag: “Unconventional measures might entail the purchase of a variety of assets, one of which is sovereign bonds,”…

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Will he, won’t he? Abe and a snap election

The Nikkei and USD/JPY rallied on talk of a potential snap election from Prime Minister Abe, then fell again as it was denied by Cabinet ministers Suga and Aso. The market is keen on this story for the following reasons: 1. There are already good reasons for both the Nikkei and USD/JPY to rally, following the surprise easing…

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