BOJ’s Kuroda: Need to continue with large-scale easing

Anil Panchal FXStreet

In addition to previous comments concerning the Bank of Japan’s (BOJ) monetary policy outlook, the BOJ Governor Haruhiko Kuroda offered additional statements to better forecast the Asian central bank’s next move.

Key quotes

If govt were to ramp up fiscal spending, the fiscal, monetary policy mix will have a bigger positive effect on the economy than when fiscal or monetary steps are taken individually.

More issuance may be meaningful to drop in yields.

Need to continue with large-scale easing.

Japan's inflation far from target.

Don't see BOJ’s ETF, J-REIT buying as causing problems in markets.

Fx and stock markets are relatively stable, which is desirable, but that doesn't mean BOJ needs to change its policy in any way.

Now expect global economy to pick up around first half to middle of next year.

Not thinking of timing any further BOJ easing with govt's decision to ramp up fiscal spending.

FX implications

The market‘s reaction to the comments has been positive amid the broad risk-on sentiment fuelled by increasing hopes of the US-China trade deal. USD/JPY takes the bids to 108.82 by the press time of pre-European session on Tuesday.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

AUD/USD bounces back toward 0.6950 on fresh USD supply

AUD/USD bounces back toward 0.6950 in the Asian session on Friday. The US Dollar retreats from 17-month highs as traders take profits off the table ahead of the all-important US Nonfarm Payrolls report. Meanwhile, the Australian Dollar draws support from reviving expectations of a November interest rate hike amid elevated global yields and inflation risks.

USD/JPY struggles near 158.00 as USD retreats ahead of NFP

USD/JPY is struggling for fresh impetus near 158.00, moving away from the top end of its weekly range in the Asian session on Friday, after hotter-than-expected Tokyo CPI and amid a broad US Dollar retreat. Traders reposition themselves ahead of US Nonfarm Payrolls.

Gold fades the earlier optimism; back below $4,200

Gold could not sustain the post-NFP bull run past the $4,200 mark per troy ounce, receding toward the $4,180 region at the end of the week. The precious metal’s inconclusive price action comes amid fresh selling pressure hurting the US Dollar as investors assess the latest NFP data.

Week ahead: Fed minutes in the spotlight amid bond market rout

The first full week of October and the final quarter of the year get underway with little fanfare in terms of the economic agenda. But far from being short on excitement, the coming week will test market nerves, as government bond yields continue to soar on growing worries that the energy crisis will only get worse, fuelling inflation.

CFTC Report: Speculators turn more defensive as Oil exposure falls

The week in one sentence: During the week leading up to September 29, long positions in crude oil were significantly reduced, while short positions in the Canadian Dollar went up. In addition, the positioning of the Australian Dollar and the Japanese Yen declined, while Coffee buying stood out against a more general background of defensiveness.

The Euro is near a one-year low: Inflation could trigger its rebound, not its fall

EUR/USD has fallen to its lowest level since May 2025. The pair hit 1.1312 on Wednesday and trades well below the January peak of 1.2082. The decline reflects a powerful combination of US Dollar strength, geopolitical uncertainty and renewed concerns about Europe's exposure to higher energy prices.