BOJ’s Nakagawa: Hard to comment on timing of next rate hike

• Markets remain unstable and likely to stay that way for now
• Need to look at what is behind such volatility in markets
• Japan economic progress is on track based on recent data as set out in July
• Important to look at how economy, prices react to changes in short-term rates

She is making sure that markets know about their reservations on the next move but the damage is done already for USD/JPY today. The break lower in Treasury yields is starting to reverberate more strongly and that’s weighing on the pair further. USD/JPY is now down 1.2% to 140.75 with 10-year yields down over 3 bps to 3.61%, its lowest since June last year.

This article was written by Justin Low at www.forexlive.com.