OctaFX | OctaFX Forex Broker
Open trading account

Japanese policy makers seek discussions on BoJ exit strategy

FXStreet (Bali) - Bloomberg carries an overnight story, flagging growing pressure by Japanese policy-makers about the necessity to discuss a potential exit strategy to BoJ ultra-easing practices, which has resulted in the domestic currency trading at multi-year lows, benefiting large exporters' names, although so far having a minor positive impact in neither the economy nor small enterprises.

Bloomberg quoted lawmaker Toshihiro Nikai, following a meeting of the ruling Liberal Democratic Party’s general council, noting that "it could be important to get involved in this issue and the government should thoroughly examine it", adding that "an exit strategy should be considered was an opinion that came up at the council meeting", Bloomberg article noted.

One of the major issues being discussed at the moment had to do with import costs, with business leaders highlighting the increase in imported products such as fuel or raw materials. As Bloomberg article expands, "Kuroda was told by business leaders in the industrial city of Osaka last month that the yen’s slide was boosting costs of imported fuel and raw materials and may spell trouble for the economy."

"Prime Minister Shinzo Abe told lawmakers in Tokyo Oct. 3 that big firms and exporters should pass on the benefits they have reaped from the weaker yen to smaller enterprises. The trade ministry last week unveiled an initiative pressing large businesses to assist small firms to pass on rising input costs" Bloomberg adds.

EUR/USD bulls searching for a 1.2700 breakout - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that, technically, the EUR/USD is in bullish territory.
Read more Previous

Sell any strength in AUD/USD - ANZ

The recent selloff in the AUD has brought it closer to fundamental fair value, notes Daniel Been, FX Strategist at ANZ.
Read more Next
Start livechat