If you want to forecast a short-term trend of the foreign exchange market, you can look at the difference in real interest rates of two countries. Let’s look at that between the States and Japan.
Continue reading The Era of Strong Yen Is Coming?
In the Upper Parliament, Governor Haruhiko Kuroda explained how a rise of interest rate would have an impact on the financial soundness of The Bank of Japan.
Since the end of January the BOJ has been working on a negative interest policy.
The lower the interest rate gets, the more fragile the BOJ’s balance sheet gets.
Continue reading BOJ’s Kuroda Says The Central Bank’s Net Worth Would Will Disappear With Only 0.8% Rise of LT Interest Rate
We updated the data of Japanese TIPS yield curve.
The data are here.
Continue reading BOJ’s 2% inflation target is so far away
Daisuke Karakama, Market Economist of Mizuho Corporate Bank, wrote to Reuters an article, proposing a hypothesis which euro is being yen-ized under the terrible economy of the euro zone.
As the disinflation is getting worse in the euro zone, euro currency could get stronger, as yen did.
Continue reading Mizuho says euro could be becoming yen-ized, forming a euro/dollar support level of 1.20
Toru Sasaki, head of Japan rates and foreign exchange research at JPMorgan Chase, wrote an article on recent dollar/yen exchange rate.
He explained the relation among the global economy, the FED’s monetary policy and the dollar/yen exchange rate.
Continue reading JP Morgan says Yen will appreciate, if emerging economies won’t recover