The Japanese Yen (JPY) enters Wednesday’s na session with an impressive 0.4% gain against the US dollar (USD), an intermediate yield between the G10 in an environment of general weakness of the USD, says Shaun Osborne, head of Scotiabank FX chief strategist.
Differentials remain stable
“Market participants are still focused on the Japan government bond market and the recent increase in yields, a consequence of the normalization of the BOJ’s policy and its reduction in large -scale bond purchases.”
“Those responsible for the Boj’s policy have been talking with market participants this week, in the context of the bad auction of bonds at 20 years on Tuesday, while preparing to reveal more adjustments in the policy decision next month in mid -June.”
“The recent market turbulence is challenging the normalization plans of the Central Bank. However, the problems seem to concentrate on the long end, since we notice the relative stability of the performance differentials between the US and Japan both in the horizon to two years and 10 years.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
