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USD/JPY: weakening upstream Japanese inflation pressures bad news for bears
Bank of Japan Governor (BOJ) Kazuo Ueda caused a stir in FX markets earlier this week, flagging the possibility the bank may abandon negative interest rates should the evidence become compelling that inflationary pressures in Japan are self-sustaining, breaking with the deflationary and disinflationary environment that’s been evident for over 30 years. Ueda flagged sustainability in wage pressures as a key requirement the bank would be watching closely. Recent data on the wages front has been largely disappointing, suggesting markets may be getting ahead of themselves in speculating an impending end to negative ... (full story)