BOE’s Ueda: Recent yen fall driven partly by optimism over US economic outlook

• We need to scrutinize whether US optimism can be sustained
• Optimism about US seems to be broadening
• When looking at fallout from weak yen on inflation, we must look not just at yen moves but factors that are driving them like perception of the US economy
• Implied volatility is still quite high, markets are unstable
• Policy makers continue to see good chance of soft landing in the global economy

Ueda is playing some defense here but the subtext is that he doesn’t really want to hike rates to boost the yen.

This article was written by Adam Button at www.forexlive.com.