FXStreet (Delhi) – Lee Hardman, Currency Strategist at MUFG, notes that the BOJ Governor Kuroda has not provided the markets with any signals about the imminent easing from the central bank.
Key Quotes
“The yen has strengthened modestly in the Asian trading session supported by the continuation of more risk-averse trading conditions with Asian equity markets in general modestly lower during most of the session. It was reported overnight that the annual rate of industrial profit growth in China moved deeper into negative territory at -8.8% in August which has added to economic slowdown concerns.”
“BoJ Governor Kuroda spoke overnight as well and failed again to provide any signal that the BoJ is moving closer to easing policy further in the near-term. He reiterated that the trend for inflation continues to improve which stands in clear contrast to developments from last year which prompted further easing. He sees sustainable upward changes in prices this fiscal year.”
“However, he would like to see more feedback from better employment and wages with further momentum needed to achieve their 2.0% inflation target. External downside risks to inflation from the economic slowdown in China and recent strengthening of the yen were downplayed.”
“He acknowledged that the slowdown in China seems to be intensifying somewhat but that he remains comfortable that overall China is on a stable growth path with large room for fiscal and monetary easing to support growth. He also stated that the yen appears likely to remain weak.”
(Market News Provided by FXstreet)