Nikkei rising, yen weakening on confirmation that Abe is providing extra economic stimulus 11 July 2016
The newly returned Japanese PM is wasting no time in trying to revive his flagging economy by adding more stimulus measures, the detail of which is yet to be confirmed. We do know that the govt will issue construction bonds for the first time in 4 years but the jury remains out on whether the BOJ will ease further.
The talks today between former US Fed chairman Bernanke and BOJ gov Kuroda only adding to the fuel though that something is afoot.
Yen weakness the flavour of the past 2 hours or so with USDJPY now breaking 101.50, EURJPY posting 112.13, GBPJPY 131.56 , AUDJPY 76.77 and all helping to support core pairs.
Expect more of the same while the conjecture continues but markets run the risk of being disappointed when the full extent of the stimulus is known.
