JPY: Japanese officials continue to jawbone - BBH

Research Team at BBH, notes that the Japanese officials continue to jawbone.

Key Quotes

“This time, it was BOJ Governor Kuroda’s turn. He called the ECB’s negative rate loan program was “extremely bold and unique.” There have been press reports that the BOJ was mulling a similar loan program. He added that Japan interest rates can technically go as low as the ECB’s.

Dollar/yen continues to have trouble breaking above the 109.30-40 area. A clean break above 109.50 is needed to set up a test of the April 28 high near 112. That was the pre-BOJ high, when the central bank then disappointed markets with no additional stimulus measures. The euro remains stuck around $1.14, while cable has been unable to break below $1.44.

Japan reported March current account data overnight. The March current account surplus is often larger than the February surplus, but the increase to JPY2.98 trln lifted to it near record highs. It was expected to rise to JPY2.966 trillion. The trade surplus does not drive the current account surplus, investment income does. However, the trade surplus more than doubled (month-over-month) to JPY927 bln.”