|Fri, Aug 02, 16|
In the overnight session, the BOJ and RBA have underwhelmed market participants in response to stimulus and or rate cut packages. Let’s start with the BOJ, where their modo is speak loudly but carry a small stick. In fact, the BOJ actual new spending stimulus will only be a quarter of the 28 trillion yen. In response, the USD/JPY was slammed to the 101 handle as the YEN strengthen against all it’s peers. JP10Y yield strengthen on fear of the BOJ phasing out QE. Renewed selling pressure was issued in the Nikkei with a potential downside target -20% discount of the 12918 level. On a laughable note, the BOJ plans to drop 2-yr time frame for it’s 2% target reports the Nikkei. JPM comes out bashing Japan seeing no risk on opportunities. God bless Kuroda.