Greg Gibbs, Analyst at Amplifying Global FX Capital, suggests that so far this year, USD/JPY has become much more loosely related to US yields and QE has been forgotten since 2016; perhaps it is returning again as a factor contributing to recent weakness in JPY. Key Quotes “The BoJ has reduced its pace of purchases somewhat since implementing yield curve control in Sep-2016, capping 10-year yields below 10bp. Nevertheless, as a percentage of GDP, the BoJ’s balance sheet has continued to grow, reaching close to 100% of annual GDP.” “The Fed’s balance sheet has been declining as a percentage of GDP since 2014; at an increasing rate since Sep 2017 when it began QT.” “The diverging size of their balance sheets could be coming back into the equation for USD/JPY.” “If the market is returning to consider relative QE, then it is possible that USD/JPY could move significantly higher again.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next EUR/USD appears neutral/bearish near term – Scotiabank FX Street 5 years Greg Gibbs, Analyst at Amplifying Global FX Capital, suggests that so far this year, USD/JPY has become much more loosely related to US yields and QE has been forgotten since 2016; perhaps it is returning again as a factor contributing to recent weakness in JPY. Key Quotes "The BoJ has reduced its pace of purchases somewhat since implementing yield curve control in Sep-2016, capping 10-year yields below 10bp. Nevertheless, as a percentage of GDP, the BoJ's balance sheet has continued to grow, reaching close to 100% of annual GDP." "The… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
