JPY sets the tone – AmpGFX
Greg Gibbs, Director at Amplifying Global FX Capital, notes that the biggest response to the Jackson Hole events came in the JPY.
Key Quotes
“We suspect that the sharp fall in JPY may be coloring the broader market response from currency to bond markets.
USD/JPY has been weak since the BoJ disappointed market expectations for more significant policy easing at the 29 July policy meeting. In uneasy calm over the last two weeks after extreme volatility into and after the 29 July policy meeting, USD/JPY has been testing the key psychological 100 level, but generally it has closed above this level. It briefly test this level post the Yellen speech, but rebounded and rose sharply above the 100.50 to 101.00 levels that had capped it for the last two weeks.
The outlook for BoJ policy on 21 September also remains very uncertain, but the BoJ at the least must try and convince the market that it is committed to extreme policy easing, even if the market doubts the effectiveness of its current policy measures, that are under review.”
Author
Sandeep Kanihama
FXStreet Contributor
Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.
