Something for your Espresso: A trial balloon from Ueda
Ueda giving an exclusive interview for the first time since April trying to talk up the JPY but will he succeed? We doubt it. The global steepener pressure remains intact.
BoJ governor Ueda hit the wires through Sunday with an exclusive interview for the first time since taking office in April, which could be soon as a trial balloon intended to support the value of the JPY. We still see the fair value of USDJPY above 150 (see chart 1).
Chart 1: USDJPY versus real rates
Ueda hinted that negative interest rates will be gone when wages and prices rise sufficiently, which is in itself not newsworthy, but we have learned a bit more about the timing of such a potential move.
Learn more below.
Ueda giving an exclusive interview for the first time since April trying to talk up the JPY but will he succeed? We doubt it. The global steepener pressure remains intact.
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