BoJ Minutes: Members agreed Japan's economy is picking up

Ross J Burland FXStreet

The Bank of Japan's minutes for the September meeting minutes are starting to hit the wires as follows:

BoJ minutes

A few members said need to be vigilant to impact monetary tightening by some central banks could have on global markets.

Members agreed Japan's economy is picking up.

Several members said weak yen could hurt households, small firms and non-manufacturers.

One member said weak yen has effect of pushing up domestic economic activity in long-term.

Some members said must expand inbound tourism, capex, hike wages to maximise merits of weak yen.

One member said various indicators on trend inflation rising.

A few members said corporate price-setting behaviour may be changing.

One member said expects prices to continue for wide range of goods.

One member said must humbly watch without any preset idea risk of inflation overshooting expectations sharply, including from impact of FX.

A few members said there is still distance from japan achieving BoJ's price target in stable, sustained manner.

One member said while BoJ needs to keep eye out on side-effects of monetary easing, no need to change policy immediately.

One member said recent rapid, speculative fx moves undesirable for japan's economy.

Several members said BoJ must communicate to public its monetary policy does not directly target fx moves.

One member said BoJ must communicate exit strategy from easy policy when appropriate time comes

One member said monetary easing effect of BoJs policy could heighten if japan's natural interest rate increases

USD/JPY H1 chart

The price is embedded below the trendlines and horizontal resistance following a recent break of structure.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

GBP/USD extends losses toward 1.3200 after weak UK PMI data

GBP/USD loses further ground toward 1.3200 in the European session on Tuesday. Political uncertainty in the United Kingdom weighs on the British Pound, alongside weak business PMI data for June. Meanwhile, the US Dollar capitalizes on the risk-off mood and hawkish Fed bets ahead of the US PMI release.

EUR/USD stays weak below 1.1450 after German, EU PMI data

EUR/USD struggles to stage a rebound and trades below 1.1450 in the European session on Tuesday, after the data from Germany showed that the Composite PMI declined to 48 in June from 48.8 May, while that from the Eurozone rose to 49.5. Meanwhile, the US Dollar holds the upper hand against the Euro amid risk-off sentiment and a hawkish Fed outlook, leaving the pair on the defensive. Traders now await the US PMI data.

Gold drops to nearly two-week low, seems vulnerable amid Fed hike bets, bullish USD

Gold adds to its Asian session losses, and drops to a nearly two-week low, around the $4,115 region in the last hour amid a bullish US Dollar. Despite positive signals from US-Iran peace talks, widespread skepticism remains toward a final deal. This helps the USD in preserving its recent strong gains to the highest level since May 2025.

Bears cap Solana below $75 as ETF, retail demand wanes

Solana edges below $72 risking a third consecutive day of losses that could erase the 5% gains from Friday. SOL-focused Exchange Traded Funds reflect muted demand from institutional investors following a minor recovery last week. Meanwhile, retail trading activity hints at a bearish positional buildup.

US S&P Global PMI expected to show steady business growth in June

S&P Global will release the June flash Purchasing Managers' Indices for most major economies, with the United States data scheduled on Tuesday. These surveys of top private-sector executives are seen as an early indicator of the country’s economic health.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.