News

• If yen fall accelerates, companies may pass on higher costs down the chain
• Food price inflation expected to moderate but timing could be delayed if yen weakens further
• Underlying inflation is yet to reach 2%
• Pace of future rate hikes will depend on incoming data
• BOJ policy adjustment has been, and will remain, very cautious and not conflicting with government policy

That last line is the only thing that matters in determining which side of the fence he is on. Besides that, the other comments are not anything that we haven’t heard of before.

This article was written by Justin Low at investinglive.com.

The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, trades on a negative note near 99.45 during the early European trading hours on Thursday.

The Australian Dollar (AUD) gains against the US Dollar (USD) on Thursday, extending its gains for the fifth successive session. The AUD/USD pair gains ground as the US Dollar (USD) struggles amid rising odds of Federal Reserve (Fed) rate cut bets in December.

USD/CAD extends its losses for the third successive session, trading around 1.4030 during the Asian hours on Thursday. The daily chart’s technical setup reflects a persistent bullish bias, with the pair remaining within its ascending channel pattern.

• The closer we get towards achieving price target, will see increased upside risk to inflation
• Various indicators measuring underlying inflation are very slowly approaching our target
• Given rising prices, the desirable policy mix is no longer as straightforward and simple as expanding fiscal stimulus and loosening monetary policy
• Sees no gap in the view from government, BOJ that monetary support needs to be gradually adjusted to keep price rises in check
• Should not necessarily wait until next year’s spring wage negotiations to gauge wage trend
• Should not judge wage trend and movements just by next year’s spring wage negotiations
• But if labour union demands are realised, it would move economy more towards conditions that BOJ hopes to achieve

He’s just trying to throw out some talk that the BOJ will do what it does and not depending on the government’s fiscal plans. But when it comes to walking the walk, so far we’re still only seeing Takata and Tamura being the only dissenters in favouring a rate hike. USD/JPY is down today though to 155.87 currently, paring the gains from yesterday with sellers resuming near-term control now.

This article was written by Justin Low at investinglive.com.

The NZD/USD pair is building on the previous day’s post-Reserve Bank of New Zealand (RBNZ) move up and gaining strong follow-through positive traction on Thursday.