The Japanese yen has weakened considerably over the past month: it is down more than 6% so far in March and USD/JPY closed at a six-year high of 123.9 on Monday. BoJ dovishness is behind yen weakness. On Monday, the central bank…
The Bank of Japan maintained its dovish tilt at its latest meeting on Friday and kept policy unchanged on an ultra-easy gear. The monetary policy statement’s assessment that “Japan’s economy has picked up as a…
Executive Summary Will The War Stall The Expected Downturn In Inflation This Year? The Russia/Ukraine conflict is impacting financial markets across numerous channels – uncertainty, risk aversion, growth expectations…
Executive Summary Upgrade Global Duration Exposure To Neutral The Russian invasion of Ukraine is a stagflationary shock that comes at a difficult time for developed market central banks that have been laying the groundwork…
Dear client, In addition to this weekly report, we sent you a Special Report from our Geopolitical Strategy service, highlighting the risk from the Russo-Ukrainian conflict. Kind regards, Chester Executive Summary The Ukraine…
Executive Summary Lots Of Pent-Up Demand The yen is unlikely to meaningfully appreciate until global bond yields stabilize. That said, very cheap valuations and a large net short position provide ample ammunition for an…
Feature This week, we present the third edition of the BCA Research Global Fixed Income Strategy (GFIS) Global Credit Conditions Chartbook – a review of central bank surveys of bank lending standards and loan demand. The data from…
After expanding by a rapid pace in early 2021, the annual growth rate of Japanese machine tool orders peaked at a stunning 142% y/y last May and have since been decelerating. More recently, they jumped 61.4% y/y in January,…
Inflation has risen sharply around the world, forcing central banks to bring forward the removal of policy accommodation and move towards policy normalization. One jarring exception to this trend is Japan where inflation remains…