We need to scrutinize whether US optimism can be sustainedOptimism about US seems to be broadeningWhen looking at fallout from weak yen on inflation, we must look not just at yen moves but factors that are driving them like perception of the US economyImplied volatility is still quite high, markets are unstablePolicy makers continue to see good chance of soft landing in the global economy
Ueda is playing some defense here but the subtext is that he doesn’t really want to hike rates to boost the yen.
This article was written by Adam Button at www.forexlive.com.
