Yen strength and upbeat comments from Kuroda - Scotiabank

Ross J Burland FXStreet

Analysts at Scotiabank noted the yen's strength on the back of relatively upbeat comments from BoJ Gov. Kuroda.

Key Quotes:

"The current policy stance was deemed appropriate, however, market participants were likely caught off guard by the Governor’s comments on policy normalization discussing the prospect of an exit from QQE and yield curve control."

"JPY appears somewhat weak relative to levels implied by interest rate differentials at both the short and longer-end of the curve, with ongoing pressure from the broader tone of risk appetite."

"Levels of implied JPY volatility are low, however, risk reversals are suggestive of a creeping rise in the premium for protection against JPY strength."

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.

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