In Japan It's "Whatever(er) It Takes"

After the strongest 4-day surge in 11 months, it would appear that the BoJ is on full-court-press tonight to jawbone the world back to the new normal. The sad truth is though, they can’t even make up their own punchlines anymore: 

  • *KURODA: BOJ WILL DO WHATEVER IT TAKES TO END DEFLATION

Well, why not, it worked for Draghi for a few months? Of course JPY is leaking back lower a little as they talk up their devaluation strategy (and all their various shiny new options – that have never been tried before) – even as:

  • *KURODA: UNCERTAINTIES ARE HIGH FOR JAPAN’S ECONOMY
  • *ASO SAYS CAREFULLY MONITORING CYPRUS SITUATION
  • *ASO SAYS CYPRUS SITUATION MAY AFFECT CURRENCY MARKETS

 

JPY has seen its biggest 4-day rise in 11 months against the USD…

 

but the jawboning is not working…

 

and a few minutes later…

 

So we need “Whatever-er It Takes”…

 Between Dijsselbloem’s slip of truth (and rapid retraction) and now this ‘copycat-ism’ by a desparate BoJ, it appears, simply put, we are being taken for fools. 

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.