- It is desirable for currencies to move in a stable manner reflecting fundamentals
- Excessive volatility increases uncertainties, reduces predictability for businesses
- No change to Japan's economic outlook despite recent market volatility
- Closely monitoring financial markets with a sense of urgency, and also calmness
A 2,000 pips range in a span of a month is probably more than what Tokyo bargained for when they decided to intervene in July. There is a calmer mood in markets right now but it doesn't mean that volatility has died down. It will take a while for fears to abate further, provided that there aren't any more shocks along the way. In that lieu, do be mindful of the US weekly initial jobless claims tomorrow as one a potential trigger on the economic calendar.
