Published: 2024-03-12T05:05:36.000Z
USD/JPY flows: The Headline Game is On
FX Analyst
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Japan’s finance minister Suzuki thought it was too early to say deflation was beaten and also not at a stage where Japan can avoid the risk of falling back into deflation
Ueda emphasis again the Bank needs to see wage talk results before any policy change
And here we go, the headline game begins as we are getting closer and closer to the result of wage negotiation and BoJ monetary policy change. Japan’s finance minister Suzuki thought it was too early to say deflation was beaten, also not at a stage where Japan can avoid the risk of falling back into deflation and Ueda emphasis again the Bank needs to see wage talk results before any policy change. This pushed back against hawkish speculation from market participant of an imminent policy change in the March meeting next week.
USD/JPY rebounded 0.29% to 147.35 after dipping to 146.62 while JGB yields are still outperforming the U.S. counterpart.