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Good day, traders! 🇯🇵 The Bank of Japan is due to announce its latest monetary policy on Friday morning and is expected to leave rates unchanged. However, the market expectation would be any potential tapering hints from the BoJ officials. Would the BoJ start tapering? Given the over-depreciation of the Japanese Yen, the BoJ is consistently seeking ways to boost the Yen from continuous depreciation. The BoJ delivered its first-rate hike in March 2024, ending eight years of negative rates in an attempt to strengthen the Yen. However, the Yen depreciated further, indicating that the market expects more from the BoJ. 🏦 Last week, BoJ Governor Ueda stated that it would be appropriate to trim the central bank bond-buying as they are looking to ending their extensive stimulus, but also emphasized that they will need to proceed it cautiously to avoid any “errors”. 👛 BoJ on Wage and Price The healthy balance between wage growth and inflation is one of the key factors BoJ officials will want to see before further implementing such policies. While inflation and wage growth have been progressing well recently, there is still a need for more confidence before considering another rate hike. Still, we could be expecting a potential hint from the BoJ on their tapering on Friday's meeting. #AETOS #currency #trading #invest #official #online #forex #global #trader #tradestocks #broker #financebroker #stocktrading #onlinebroker #financialfreedom #financialeducation #education #knowledge #stocks #news  WWW.AETOSCG.COM

Yen Falls to 2024 Low as Rate Gap Undercuts BOJ’s Historic Hike https://lnkd.in/gFNxnpJk The Fed and BoJ must collaborate to guide the Dollar/Yen rate to a GENTLE LANDING. A mishap could unleash a massive unwinding of the Yen Carry Trade and its impact on foreign-assets markets and Japan's 'export-competiveness'.🫣

Bank of Japan likely to reverse its ultra-loose monetary policy; how will this impact bonds, equities, currencies? Reports suggested that Japan, touted as the last bastion of negative interest rates, will tighten its monetary policy on March 19. The US Federal Reserve, Bank of England and the Bank of Japan (BoJ) are all slated to announce their monetary policy decisions this week. However, while expectations of the current rates being maintained by the US Fed and the Bank of England have been priced in, all eyes are on the Japanese central bank. Following a two-day meeting, the BoJ is likely to hike its interest rate for the first time in 17 years. The policy rate could be raised by more than 10 bps to guide short-term interest to the 0-0.1 percent range. All major currencies are going to weaken against Yen (JPY). Rupee will have the direct correlation with the Yen. We can expect some major swings in INR post increase by BOJ in the interest rates. #BOJ #interestrates #federalreserve #boe #inflation #JPY #INR #Majorcurrencies

Citadel Daily Commentary - Monday 28 October 2024 Asian currencies mostly fell in the first session of early trade for the week. The Japanese yen hit a three-month low as the Japanese ruling party lost its majority in parliament, which has reduced expectations for interest rate hikes in the country. Meanwhile a smaller than expected retaliation from Israel sent the oil price tumbling. The US Dollar Index remains at three-month highs ahead of this week’s US data releases which include house prices, third-quarter GDP, and the Fed’s preferred inflation measure, the PCE price index. We will also keep a close eye on the local MTBPS on Wednesday. The rand remains on edge as risk events unfold, and is trading at R17.72/$, R19.11/€ and R22.94/£. #offshore #investment #OffshoreInvestment #retirement #retirementplanning

Macro: Bank of Japan #BOJ announces Interest Rate Policy Rate will hold @ July raised 25 bps. No further rate change by BOJ due to Japanese #inflation holding at 3%, and wage growth over the past quarter steady rising. However, BOJ states that if Yen where to weaken then rate increase of at least an additional 10 bps would be on the table. This is something to look at as rates in Japan are still relatively low compared to US even after the most recent US Fed 50 bps drop. As of this note #USD/JPY climbed from 141.5 to 142.84, showing that the market can for now perhaps breathe a sign of relief.

With the Yen having drifted back to the 157 level to the dollar, these interesting remarks (as reported by Reuters) from Bank of Japan Board Member Seiji Adachi, helping to shift the spotlight from possible currency intervention to greater openness to an earlier interest rate hike: "We must by all means avoid raising interest rates prematurely. But by focusing too much on downside risks, we could see inflation accelerate in a way that forces us to tighten monetary policy sharply later on." And "If yen falls accelerate or persist, consumer inflation may rebound sooner than expected. If this happens at a time when there is a higher chance of inflation durably and stably exceeding 2%, we may need to push forward the timing of an interest rate hike." #economy #japan #boj #centralbanks

BOJ DISCUSSED THE WEAKER YEN AND TIMELY HIKE BUT THE COMMITTEE STRIKES A SLIGHTLY HAWKISH TONE In the early hours of Monday morning the minutes of the June BoJ meeting were released. Two members appeared in favour of a rate hike in a timely manner with one member mentioning, ‘must raise interest rate in timely fashion without delay in accordance to heightening chance of achieving price target’. The other pointed to the continued yen weakness stating, ‘weak yen could lead to overshoot in inflation, which means appropriate level of policy rate would be pushed up’. However, there was a balance with other members weighing in to highlight sub-optimal consumption levels and the need to wait for incoming data before jumping to the conclusion that inflation is on a definite uptrend. A simple index of Japanese yen performance points to a continued decline as the currency approaches a very dangerous level seen in USD/JPY. Japanese Yen Index (equal weighting of USD/JPY, GBP/JPY, AUD/JPY, EUR/JPY)

The #Japanese yen has indeed hit a 34-year #low against the US dollar, which has raised concerns and prompted discussions. Here are some insights about this situation: Recent Developments: The #yen #weakened significantly, touching a new 34-year low against the US dollar. Despite verbal warnings from Japanese authorities, the currency continued to slide. The Bank of #Japan (BoJ) recently decided to keep its key #interest #rate unchanged, contributing to the yen’s decline. There has been speculation about potential intervention by authorities to stabilize the yen. Factors Contributing to Yen Weakness: A stronger dollar has played a role in the yen’s decline. Stubborn US #inflation has influenced the situation, with Federal Reserve Chair #Jerome #Powell suggesting that rate cuts may not occur in the next several months. #Challenges for the BoJ: The BoJ faces a #delicate #balance. While a weak yen boosts #exports, it also inflates import costs, affecting households and smaller #retailers. #Policymakers have warned against excessive depreciation of the yen, but finding the right timing for interest rate #hikes remains challenging. #Potential Triggers for Intervention: The BOJ may raise this year’s price forecast but could cut #economic #growth projections due to sluggish consumption and factory output. The #central #bank is closely monitoring #wage hikes and services prices as #indicators for potential rate increases. In summary, the yen’s decline has implications for both inflation and consumption, and authorities are carefully assessing their next steps. Keep an eye on further developments, including the BOJ’s actions and US data releases

📰 Easy Trading Online | Breaking News | 09.20.2024 THE BANK OF JAPAN (BOJ) MAINTAINS INTEREST RATE POLICY, BUT CLEAR SIGNALS OF FUTURE RATE HIKES The Bank of Japan (BoJ) is expected to maintain its current interest rate policy at the meeting on September 20, 2024, following a surprise rate hike in July. However, the market anticipates that the BoJ will continue raising rates in the future, potentially reaching 0.50% by December. Inflation in Japan remains above the 2% target, forcing the BoJ to weigh the balance between increasing rates to control inflation and the negative economic impacts of rate hikes. BoJ Governor Kazuo Ueda stated that future rate hikes will be considered if inflation continues approaching the 2% target. However, market volatility and differing views within the BoJ on the timing of rate increases present challenges for the central bank. Additionally, the policy divergence between the Fed and BoJ could strengthen the Japanese yen, potentially driving USD/JPY lower in the coming months. 🌟 Start trading globally with just a tap at: www.easytradingol.com #EconomicNews #Forex #Trading #EasyTradingOnline #USD #interestrates