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Japan Finmin Aso has crossed the wires and said that the size of Japan’s extra budget has not been decided yet.

Key comments

  • Market trust is a key reason JGB  yields have not spiked.
  • Need to keep market trust in the government’s finances.

FX implications

These are a rinse and repeat of recent comments. He recently talked about it being  “very possible” that tax revenue would fall short of the 62 trillion yen ($570 billion) forecast for this fiscal year ending next March which is not particularly positive. USD/JPY trades according to risk flows in the main, so these comments hold little bearing on the pair, for now, as markets are fixated on trade deal hopes between the US and China.  

  • USD/JPY consolidates gains to 109.00, trade sentiment stays positive