The G7 Communique gave vague support to Japan to prop up the yen

Reuters carry a piece saying Japan renewed its push at the G7 to counter yen bears,. The G7 responded in its communique, says Reuters:

  • After lobbying by Japan, the G7 finance ministers reaffirmed
    in a communique issued after their meeting in Italy on Saturday
    their commitment cautioning against excess volatility in foreign
    exchange rates.

Yep, that’s it. Otherwise Japan came away empty-handed, finance minister Suzuki didn’t even get a one-on-one with yellen:

Some remarks from analysts:

  • Service-sector inflation, closely watched by the BOJ as a
    key indicator of underlying price trends, also remains flat. “Services inflation likely peaked out,” said Junichi Makino,
    chief economist at SMBC Nikko Securities. “It doesn’t seem like
    underlying inflation will accelerate towards 2%.”
  • “While markets seem excited about the chance of a policy
    shift, the BOJ is probably cool-headed about all this,” said
    Daiwa Securities chief market economist Mari Iwashita, who rules
    out the chance of a taper decision in June. “Besides, there’s no guarantee such action could stop the
    yen’s fall.”

Update for USD/JPY, not a lot changed so far:

Still to come:

This article was written by Eamonn Sheridan at Source