Kōsho Trade resumes, USD/JPY briefly in the 152 yen level.
【10/21Market Overview
Tokyo time, with expectations that Prime Minister Takai (T. Takai) of the Liberal Democratic Party would be elected prime minister, a background of active fiscal policy and monetary easing led to selling of yen and buying of dollars. After Takai’s election as prime minister, the Nikkei Stock Average stalled and the dollar/yen fluctuated; however, when some news agencies reported that the Bank of Japan has not ruled out the possibility of an additional rate hike by year-end, but there is no need to rush a rate hike at next week’s meeting, the dollar/yen rose to151.61yen. In European hours, European traders joined with yen selling, and with Takai trade resuming, the dollar/yen rose to152.17yen.NYtime, U.S.10year yields declined and the dollar/yen fell to151.46yen, but with a London fix observed dollar buying, the dollar/yen rose to151.97yen.
【10/22Market Outlook