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 www.forexlive.com. Source