Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Japanese Chief Cabinet Secretary Hirokazu Matsuno has noted that "currency stability is very important for Japan," stressing that policymakers are watching FX movements. The Japanese policymaking sphere was relatively quiet re: such matters during the latest run higher in USD/JPY (which challenged Y115.00 on Wednesday), with the JPY actually finding itself atop the G10 FX table in the period since October 20 (given USD/JPY's retracement to Y114.00). This has allowed the JPY trade weighted index (TWI) to recover from the multi-year lows registered on October 20, which in turn likely meant that the Japanese powers that be could remain relatively muted even as USD/JPY briefly threatened to break above Y115.00 for the first time since early '17. Matsuno is looking to reinforce the message of alertness when it comes to FX matters, after PM Kishida noted that the government will scrutinise the economic impact of any further declines in the JPY, which could damage corporate profits, back on October 12. Matsuno's rhetoric remains relatively timid when judged on the broader Japanese "traffic light" scale re: policymaker language surrounding FX movements.
Fig. 1: Deutsche Bank JPY TWI
Source: MNI – Market News/Deutsche Bank/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.