ECB Signals Steady Rates Ahead as Policymakers Warn of Inflation Risks 
Asian Fund Managers Turn More Optimistic on Growth but Curb Equity Return Expectations: BofA Survey 
BoE Set to Cut Rates as UK Inflation Slows, but Further Easing Likely Limited 
Fed Near Neutral Signals Caution Ahead, Shifting Focus to Fixed Income in 2026 
BOJ Expected to Deliver December Rate Hike as Economists See Borrowing Costs Rising Through 2025 
Bank of Korea Downplays Liquidity’s Role in Weak Won and Housing Price Surge 
As per the Abenomics, which eyes on fresh fiscal easing, made possible by the fact that the BOJ has already bought a decent chunk of the government’s debt. That edges Japan closer to central-bank financed fiscal policy and raises the stakes – for the economy and the currency.
The capital outflows referred to above will remain JPY negative until at least mid-2016. And this figure does not include other public pension funds that follow GPIF and have only just started reallocating
If this latest throw of the dice delivers a sustainable acceleration in growth, the yen has scope to recover further, but the jury’s out.
However, the balance of payments data show significant long-term capital outflows from Japan, which suggest that the yen’s bounce, at these levels, is overdone.
As a result, we could foresee the USD/JPY to claw its way back above 110 in the coming months.
The Bank of Japan remains concerned by yen strength and could prevent a move below 100.
Since 1-3m IVs in this pair seems to be considerably spiking, the leveraged call spread can be deployed in FX portfolios saying thanks to high 2m volatility.
