The post Japanese Yen: Policy shift talk supports JPY – MUFG appeared on BitcoinEthereumNews.com.
MUFG’s Derek Halpenny notes the Japanese Yen is leading G10 gains after Finance Minister Katayama unexpectedly urged households and the GPIF to increase investments in Japanese financial assets. He stresses these policy shifts will take time, with Bank of Japan (BoJ) credibility still crucial before domestic investors materially reallocate from foreign assets back into JGBs, limiting near-term Yen impact. Katayama comments lift Japanese Yen “The yen is the top performing G10 currency today with the move triggered by a remark at a regular press conference by Finance Minister Katayama.” “In discussing government investment plans Katayama stated that it was now a government priority to “encourage households, as well as pension funds including the GPIF, to increase their investments in Japanese financial assets”. This has come from nowhere and hence the surprise has had a notable impact not ju
The post BoJ will likely revise 2026 GDP forecast higher in Q2 report appeared on BitcoinEthereumNews.com.
According to sources, the Bank of Japan (BoJ) may revise up the fiscal 2026 economic growth forecast in the quarterly report due in July. The BoJ is expected to report that it will keep focus on the risk of inflation overshooting the central bank’s target, Reuters reports. The sources also stated that the BoJ will keep interest rates unchanged in July but maintain policy guidance pledging to continue raising rates. Market reaction The Japanese Yen (JPY) has not shown an immediate reaction to the headlines mentioned above. At press time, the USD/JPY is down 0.45% to near 169.70 even after recovering some of its early losses. Bank of Japan FAQs The Bank of Japan (BoJ) is the Japanese central bank, which sets monetary policy in the country. Its mandate is to issue banknotes and carry out currency and monetary control to ensure price stability, which means an inflation target of aroun
The post Euro: Yield spreads hint at recovery against US Dollar – MUFG appeared on BitcoinEthereumNews.com.
MUFG’s Derek Halpenny highlights that European Central Bank (ECB) minutes added little new information but confirmed openness to another rate hike, consistent with MUFG’s call for a 25bp move in September. Despite the Euro being July’s weakest G10 currency, a turning 2-year yield spread and potential US yield declines could support renewed EUR/USD upside in coming weeks. ECB stance and yields guide Euro outlook “The ECB will be certainly less concerned over longer-term inflation expectations becoming un-anchored with the 5y5y inflation swap rate having declined since the initial ceasefire was agreed.” “If crude oil and/or natural gas prices were to rebound sharply then risks will rise of course but at this point longer-term inflation expectations remain well anchored.” “In that context we see continued risks of the ECB acting again consistent with our current forecast of another
The post British Pound retreats from multi-year highs as JPY strengthens appeared on BitcoinEthereumNews.com.
The GBP/JPY cross attracted heavy selling on Friday, snapping a two-day winning streak to the highest level since January 2008, around the 218.00 mark set the previous day. The intraday descent drags spot prices below the 217.00 mark during the first half of the European session amid a broadly firmer Japanese Yen (JPY). The Japanese Yen (JPY) rallies across the board after Japan’s Finance Minister Satsuki Katayama said that the government plans to encourage pension funds to increase their holdings of domestic financial assets. She added that the government anticipates gradual increases in interest rates as it pursues a proactive fiscal policy stance, and that she wants to speed up discussions on expanding JGB products aimed specifically at households. A larger and steadier base of long-horizon domestic buyers could help absorb increased bond issuance tied to Japan’s fiscal expa
The post USD/JPY Price Forecast: Dollar finds resistance at the 161.75 previous support appeared on BitcoinEthereumNews.com.
The US Dollar (USD) holds losses below 161.75 against the Japanese Yen (JPY) on Friday following a 100-pip reversal earlier on the day. Japanese Finance Minister Satsuki Katayama announced a plan to boost pension funds’ investment in domestic assets, which sent the Yen surging across the board during the Asian trading session. Katayama said on Friday that the government wants the giant Japanese pension funds, which manage more than USD 1.8 trillion in assets, to redirect their investment into the domestic market. The market has seen this plan as more effective than interventions to support the Yen, and the immediate reaction was a strong JPY recovery. The US Dollar, on the other hand, remains moderately soft, amid rumours that Qatar and Pakistan are working to bring US and Iran back to the negotiating table. Beyond that, the release of the minutes of June’s Feder
The post Japan’s Kihara says that specifics of monetary policy to be left to BoJ appeared on BitcoinEthereumNews.com.
Japan’s Chief Cabinet Secretary Minoru Kihara said during the European trading session on Friday that the specifics of monetary policy to be left to the Bank of Japan (BoJ). These remarks from Japan’s Kihara appear to a message to global financial markets that the administration won’t interfere in central bank’s monetary policy operations. Market reaction No immediate reaction is seen in the Japanese Yen (JPY) following remarks from Japan’s Kihara. At press time, USD/JPY trades 0.43% lower to near 161.70 due to JPY’s outperformance. Japanese Yen FAQs The Japanese Yen (JPY) is one of the world’s most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan’s policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors. One of the Bank of
The post Japanese Yen rises as Japan urges pension funds to invest in domestic assets appeared on BitcoinEthereumNews.com.
The USD/JPY pair tumbles to around 161.50 during the early European trading hours on Friday. The Japanese Yen (JPY) edges higher against the US Dollar (USD) after the reports that Japan plans to encourage pension funds to increase their holdings of domestic financial assets. Japan’s Finance Minister Satsuki Katayama said that the government is pursuing measures that would include the Government Pension Investment Fund (GPIF) to make “substantially greater investments in Japanese financial assets,” per Reuters. Analysts said this move could offer greater support to the battered currency than intervention. Traders reduce their bets of a rate hike from the US Federal Reserve (Fed) this year, weighing on the Greenback against the JPY. New York Fed President John Williams said on Thursday that despite the resumption of hostilities in the Middle East, he was not looking
A shift in GPIF's investment strategy could impact global markets, affecting currency dynamics, bond yields, and risk appetites worldwide.
The post Traders question Japanese government’s commitment to pension fund investments amid yen rally appeared first on Crypto Briefing.
Bitcoin's correlation with USD/JPY highlights the need for crypto investors to consider forex dynamics, impacting diversification strategies.
The post Bitcoin remains strong in USD but lags in JPY amid Bank of Japan intervention fears appeared first on Crypto Briefing.
