The Yen is in demand. Overview for 19.11.2019
USDJPY is slowly falling; investors are interested in “safe haven” assets again.
On Tuesday morning, the Japanese Yen is strengthening against the USD. The current quote for the instrument is 108.60.
Lengthy trade talks between the USA and China aren’t making market players too nervous so far, but it’s clearly seen that their demand for “safe haven” assets is going up. They are doing it just in case – the time is passing by, but no new or essential information appears.
Earlier today, the Governor of the Bank of Japan Haruhiko Kuroda said that the Japanese regulator maintained options for further cuts of its rates, which were already negative. However, there were limitations in the monetary policy that the BoJ wasn’t going to break. According to Kuroda, the BoJ has tools for additional rate cuts. His words were some kind of an answer to all those who accuse the regulator of being too inefficient in stimulating the country’s economy.
By now, the BoJ owns almost half of all government bonds. At the same time, the second half is circulating on the debt market, which means that the regulator may continue buying them.
As for economic growth potential, Kuroda is pretty calm, but he does see the amount of external risks and most of them are one way or another related to the global economy.