- Trump's proposed tax, tariff, and immigration policies are basically inflationary
- Trump administration might revise those policies at some point if inflation accelerates
- Don't think there's any need to change G7 commitment on currencies
- Closely monitoring FX moves on a daily basis
- Volatile FX moves are not desirable
Just some token remarks there by Mimura. Falling yields have been a key contributor to the fall in USD/JPY this week but also as traders are lining up for the BOJ decision on Friday. The odds of a 25 bps rate hike are at ~88% currently. That is a notable change to the coin flip pricing from around two weeks back.
