The debate over the American elections continues while effects on the Greenback, particularly against the Japanese Yen, boosts the USD/JPY cross bringing it to test the 100.75 level and boosting futures too.
Despite the Trump-Clinton rivalry is one of the most important market mover at the time of writing, on the Asian market more powerful forces could fuel stocks and currencies, with the BOJ on the forefront and with the release of the minutes for the 28-29 July (that you can find HERE).
The Central Bank governor Haruhiko Kuroda, moreover, gave explanations on the “strengthen the existing framework for monetary easing” by introducing price control to the Japanese bond market.
After the fairly good success of the Japanese Quantitative Easing and despite a positive turnaround “the price stability target of 2% had not been achieved”, bringing Kuroda to a frank conclusion:
“it is necessary to dramatically change people’s outlook for prices”.
The solution to this problem, always according to the governor, came after a comprehensive revision of the monetary policy. The most effective way to overcome the problem is “facilitate the formation of a yield curve which is deemed most appropriate for achieving the price stability target of 2% through the appropriate combination of a negative interest rate and Japanese Government Bond (JGB) purchases”.
An innovative maneuver which promises to be the principal market mover for the Yen price, and not just that.
In addition to the Trump-Clinton debate, however, today’s session will see a lot of attention to the US Consumer Confidence data expected in late afternoon.