Author: Admin

  Is the Bank of Japan Truly Independent?   In Japan in the mean time… One key theme in 2025 has been a weaker USDJPY, driven by diverging monetary policy paths. While the Bank of Japan (BoJ) has been preparing to raise interest rates, other major central banks, most notably the U.S. Federal Reserve (Fed) are shifting toward rate cuts.   USDJPY Daily Chart  However, recent political developments in Japan are reshaping market expectations. The soon-to-be Prime Minister Sanae Takaichi, a proponent of Abenomics, has signaled a potentially more cautious stance on monetary tightening. According to a Newsquawk.com report: Advisor…

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The EUR/USD tumbles below the 1.1600 figure, losing over 0.50% as the US Dollar extended its weekly rally, posting gains of more than 1.70% against a basket of six currencies, the DXY, sponsored by a risk-off mood. At the time of writing, the pair trades at 1.1563 after hitting a daily high of 1.1648.Greenback extends rally as risk-off sentiment and soft German data pressure the shared currencyThe Euro fell to an eight-week low of 1.1542 on Thursday amid the political turmoil in France. The resignation of the French Prime Minister Sebastien Lecornu keeps investors worried about the country’s fiscal deficit.…

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  NEWSQUAWK PREVIEW: Japanese LDP Leadership Election, 4th October 2025   Tokyo Japanese LDP Leadership Election BACKGROUND The LDP will elect its new president on 4th October following the resignation of PM Ishiba on 7th September. The winner will almost certainly become Japanʼs next PM, with the Diet vote slated for mid-October. The contest comes at a moment of weakness for the party: the LDP-Komeito coalition no longer holds a majority in either chamber of the Diet, after losing the upper house in July 2025 and already being short in the lower house since 2024, leaving the new leader judged…

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Federal Reserve (Fed) Bank of Minneapolis President Neel Kashkari struck a more reserved tone than some of his Fed counterparts on Tuesday, cautioning that it’s still too soon to be able to tell if tariff-led inflation will be “sticky” or not. However, Kashkari noted that he’s particularly bullish on the labor market, and is expecting a return to form for American job creation which has sputtered recently.Key highlightsToo soon to know if inflation will be sticky from tariffs.Skeptical that a lot of workers are being replaced by AI now.Bullish on labor, workers have a very important role in the economy.Hearing…

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  The “Takaichi Trade”   Tokyo Japan The “Takaichi Trade” Explained Global markets have already coined a new phrase called the “Takaichi Trade.” It refers to the market reaction following the election of Japan’s new Prime Minister, Sanae Takaichi, who is widely seen as a supporter of former leader Shinzō Abe’s economic strategy known as Abenomics. While it’s still unclear how closely Takaichi will follow Abe’s playbook, traders have wasted no time expressing their views by buying Japanese stocks, selling the yen (JPY), and selling bonds. The move reflects expectations of policies favoring growth, stimulus, and a weaker yen, all…

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