BoJ Minutes showed members said pent-up demand has yet to materialise in Japan

Ross J Burland FXStreet

The Bank of Japan Minutes came out in recent trade and they showed that a few members said chip shortage, supply chain disruptions are weighing on global output, trade.

Additional key notes

Members shared view Japan's economy likely to improve as impact of pandemic subsides

Many members said pent-up demand has yet to materialise in Japan.

One member said consumption may pick up but sustainability of rebound is uncertain due to weak summer bonus payments.

One member said rises in food, energy costs could deviate from overall price index, must watch their impact on consumption.

One member said pent-up demand may not strengthen as much as expected if pandemic is not contained.

One member said supply constraints lasting longer than what many firms expected, may have bigger-than-expected negative ipmact on japan's economy.

One member said BoJ must consider phasing out pandemic-relief loan scheme if pandemic's impact on economy subsides.

One member said BoJ must respond swiftly as needed with close eye on impact china's property woes could have on global markets.

One member said BoJ must watch closely for any sign of disruption to its market operation from scheme aimed at strengthening regional banks' profitability.

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.

EUR/USD trims gains, reclaims 1.1600 and beyond

Following an earlier drop to yearly lows around 1.1530, EUR/USD now manages to recoup part of the ground lost and reclaim the area above 1.1600 the figure in the latter part of the NA session on Tuesday. Meanwhile, the pair’s marked retracement comes in response to the unabate march norht in the US Dollar, always propped up by the intense flight-to-safety environment amid the deteriorating geopolitical landscape in the Middle East.

GBP/USD attacks 1.3300, refreshing three-month lows

GBP/USD is deep in the red near 1.3300, accelerating its downside to renew three-month lows in European trading on Tuesday. The ongoing escalation in the Iran war, combined with rising Oil prices, weighs negatively on the higher-yielding Pound Sterling as the US Dollar capitalizes on increased haven demand.

Gold bounces off lows, back above $5,100

Gold remains on the defensive, eroding part of the recent multi-day advance and managing to trade back above the $5,100 mark per troy ounce on Tuesday. The precious metal initially dropped just below the critical $5,000 threshold on the back of the persistent strength of the Greenback, higher US Treasury yields across the curve and investors' repricing of Fed rate cuts.