USDJPY tumbled back below 109.00 as market participants interpreted BoJ Governor Kuroda’s comments at a panel in Davos as relatively optimistic (and thus hawkish for one of the world’s most dovish central bankers).
Bank of Japan Governor Haruhiko Kuroda says a 15-year period of deflationary mindset is not easy to eradicate from consumers but sounded an optimistic note.
Kuroda said Japanese growth is moderate, but well-balanced, but noted that wages and prices are picking up, and that the BoJ is “finally close” to its 2% inflation target.
Bloomberg notes that Kuroda sees some risks to Japanese outlook – mostly external and geopolitical – and reassured that BOJ will continue to support the economy.
The reaction was a swift bid for JPY, sending USDJPY back below 109.00
For now stocks are shrugging it off…
Gold is recovering in its mirror-like manner as USDJPY slides.