JPY

THINK TWICE before you read that NIKKEI report

This analysis from MNI FX Bullets:


A further careful reading of the Nikkei story on Japan readying for intervention raises a couple of noteworthy points;

1) Report is not sourced, does not suggest that officials are dropping hints;
2) discusses what steps BOJ may take, further easing measures-- exchange rate is purview of MOF who directs BOJ to act on FX, no discussion of whether MOF is readying for intervention.

Report stops far short of signaling intervention is imminent and reminds that recent yen gains have been a function of dollar slippage related to the debt crisis in the US. Nikkei says US is expected to look the other way on any yen intervention, and reminds that BOJ intervened heavily last September in a single-handed action to slow yen gains, adds that any intervention could also be accompanied by additional easing measures. Noteworthy, it says that such additional easing measures could be considered at the 2-day BOJ board meeting that begins Thursday; a backhanded hint at timing?


To get your subscription of MNI FX bullets, click here: http://www.ashraflaidi.com/products/sub01/



Ashraf