- It is recommended that currencies move in a stable manner that reflects the fundamentals.
- Excessive volatility increases uncertainty and reduces predictability for companies.
- No change in Japan’s economic outlook despite recent market volatility
- Monitoring the financial markets closely with a sense of urgency and calm as well.
A 2,000 basis point range within a month is probably more than Tokyo anticipated when it decided to intervene in July. The mood in markets is calmer now, but that doesn’t mean volatility has gone away. It will be some time before concerns subside further, provided no further shocks occur along the way. Instead, watch tomorrow’s US weekly initial jobless claims as one of the potential catalysts on the economic calendar.
This article was written by Justin Low on www.forexlive.com.
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