Hirofumi Suzuki, Chief Currency Strategist at SMBC in Tokyo, says the trade news is encouraging for Japan’s economy , but not sufficient to shift the Bank of Japan’s policy stance.
“This is good news for the Japanese economy. However, it alone will not prompt the Bank of Japan to raise interest rates,” he said.
Suzuki noted that political instability remains a more influential factor, adding that pressure on the yen is likely to persist as markets focus on risks rather than policy tightening.
USD/JPY is a touch below its spike down on the news now. JGB yields are rising again .
This article was written by Eamonn Sheridan at investinglive.com.
