Select Language

JPY holds defensive ahead of LDP vote - BNY

Breaking news

JPY holds defensive ahead of LDP vote - BNY

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.10.03 20:56
JPY holds defensive ahead of LDP vote - BNY

update 2025.10.03 20:56

The Japanese Yen (JPY) has taken a relatively defensive stance ahead of tomorrow's LDP leadership vote. Even though BoJ commentary is clearly pointing toward further tightening - reinforced by Governor Ueda overnight - much of the shift in policy differentials between the BoJ and the Fed, in addition to between Japan and other countries, was well reflected in flows in the first half of September, BNY's Head of Markets Macro Strategy Bob Savage reports.

Fiscal outlook key risk for Yen trajectory

"The market view that there would be another opportunity to realize JPY valuations has contributed to the JPY retaining a solid holdings position. However, should the next administration adopt a more expansionary fiscal tone, it would be difficult to dismiss the impact on policy execution."

"Even before the election was called, the BoJ had been adjusting quantitative tightening operations to limit the impact on market functioning and the curve - a step recently emulated by the Bank of England. Should fiscal impulse strengthen beyond current expectations, especially with inflation running ahead of target, further mitigation through policy adjustments will be necessary and this could impact the trajectory of real rates."

"The knock-on effect on the JPY would be obvious, though for now it appears that much of the selling is being undertaken through USD/JPY purchases. Even if the status quo generally prevails, iFlow's JPY holdings figure indicates it could be difficult to add to JPY longs aggressively from current levels, notwithstanding ongoing valuation attractions."


Date

Created

 : 2025.10.03

Update

Last updated

 : 2025.10.03

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

Fed's Jefferson nods to risks on both sides of the Fed's mandate

Federal Reserve (Fed) Vice President and Board of Governors member Phillip Jefferson acknowledged that ongoing risks to both sides of the Fed's policy mandates are seeing growing risks.
New
update2025.10.04 03:56

Gold climbs as shutdown fuels haven demand, eyes record high

Gold price advances during the North American session on Friday, up by 0.70% for the day as the US government shutdown extends to three days, poised to end the week positively for the seventh straight week. At the time of writing, XAU/USD trades at $3,882 after hitting a daily low of $3,838.
New
update2025.10.04 03:54

Fed's Logan warns inflation pressures persist, could be made worse

Federal Reserve (Fed) Bank of Dallas President Lorie Logan struck a nervous tone on Friday, warning that despite a rapidly-weakening labor market, a lot of potential policy moves could accidentally spark another round of renewed inflationary pressures.
New
update2025.10.04 03:49

Dow Jones Industrial Average rises 300 points on Friday

The Dow Jones Industrial Average (DJIA) caught a firm bid on Friday, rising 482 points, or 1.04%, bottom-to-top. The Dow briefly pierced the 47,000 major price handle for the first time ever, before easing back to a more sedate +300 points (0.65%) on the day.
New
update2025.10.04 03:44

AUD/USD holds near 0.6600 as Greenback weakens on US shutdown and soft PMI data

The Australian Dollar (AUD) holds modest gains versus the US Dollar (USD) on Friday, supported by a weaker Greenback as the United States (US) government shutdown drags on and the ISM Services Purchasing Managers Index (PMI) softens.
New
update2025.10.04 03:23

EUR/USD holds modest bid amid US shutdown and mixed PMI readings

The Euro (EUR) trades with a modest bid against the US Dollar (USD) on Friday, with EUR/USD stuck in this week's range of 1.1750-1.1700.
New
update2025.10.04 00:38

GBP/USD rises as US shutdown prolongs, Fed data gap grows

The Pound Sterling advances some 0.26% on Friday as the US government began its third day of shutdown and skipped the release of Nonfarm Payroll figures for September. Purchasing Managers Index (PMI), data from S&P Global and ISM in the US, are the main drivers of price action.
New
update2025.10.04 00:36

EUR/JPY rebounds after dip to one-month low

The Euro (EUR) gains traction against the Japanese Yen (JPY) on Friday, recovering after briefly slipping to its lowest level since September 9 on Thursday. At the time of writing, EUR/JPY trades near 173.00, staging a modest rebound from recent lows.
New
update2025.10.03 23:08

Fed's Miran: Inflation expectations are reasonably well anchored

Fed policymaker Stephen Miran stressed the importance of forward-looking analysis in shaping monetary policy.
New
update2025.10.03 22:54

GBP/JPY steadies near 198.00 as Yen weakens, UK PMI signals slowdown

The GBP/JPY steadies on Friday, snapping a four-day losing streak after sliding to its lowest level since August 7 on Thursday. At the time of writing, the cross is holding firm near the 198.00 handle, easing back from an intraday high around 198.55.
New
update2025.10.03 22:16

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel