The economic data we've had from Japan this morning (Asia time) is not indicative of a central bank in any hurry to tighten monetary policy:
- Reuters Tankan large manufacturing index negative, 1st time since the start of 2021
- Japan data: November Core Machinery Orders -8.3% m/m (expected -0.9%)
Still, with JGBs remaining under pressure the BoJ's hand may be forced.
USD/JPY has popped a little:
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And, I'm a bit of a broken record on this, but for those folks just tuning in ....
Ahead today is the Bank of Japan policy statement. Due in the 0230 to 0330 GMT time window (2130 - 2230 US ET).
Previews:
- TD say still plenty of room for yen gains, see as low as 120 by the end of March
- Bank of Japan preview - "may be on the verge of its biggest policy change in decades"
- The hyenas are circling the Bank of Japan
- 10-year JGB yields still pushing the limit for now
- The risks are skewed towards disappointment for yen bulls this week
