In the overseas market after this, it seems that the development will include adjustments ahead of the weekend. While the tightening stance of the US and European financial authorities has become clear this week, the Bank of Japan has maintained its traditional easing stance, such as notifying continuous limit operations. FRB Chairman Powell said yesterday that a 0.5% rate hike would be discussed at the May FOMC meeting, and the ECB’s vice-president and others suggested that a rate hike could start in July. Pressure from the stronger dollar and stronger euro is intensifying the depreciation of the yen.
However, there was a scene where yen sales were adjusted due to the speculation that there would be discussions on foreign exchange at the Japan-US Finance Ministers’ Meeting, where the Finance Ministers and Central Bank Governors’ Meeting was held at G7, G20, etc. Buying and selling is becoming more nervous. The Treasury Ministers of both countries met in the early hours of yesterday, but no particular message regarding foreign exchange was heard from the US side. For the Japanese side, the adjustment to the depreciation of the yen was less hopeful because it was a miss. Recently, it has been reported that a senior official of the Ministry of Finance has discussed the cooperative intervention between Japan and the United States, but what is the seriousness of the US side?
The US financial authorities will enter the blackout period ahead of the announcement of the results of the FOMC meeting on May 4. There are no outstanding lectures by US financial officials today. With yesterday’s remarks by Chair Powell, the immediate remarks will be sealed. As the clues become difficult, the market is likely to move up and down nervously due to the digestion of short-term positions, as the weekend is approaching.
I went to buy EUR on the ECB VIP’s remarks from yesterday, but I missed it. It is currently being sold heavily and EURJPY has already stopped out.