Japan finance minister Suzuki verbal intervention again

Japan finance minister Suzuki with light intervention comments, really light on stuff. This isn’t going to scare anyone:

• BOJ’s decision to change policy could squeeze policy expenditures
• Won’t comment on
  forex levels
• Important foe forex
  rates to move stable reflecting fundamentals
• Watching forex moves
  with high sense of urgency
• Fx rates are set by
  market
• Will take
  appropriate steps in fiscal management
• The possibility of FX intervention is the most difficult to comment

As a guide to more serious verbal intervention, I posted this a while back:

• Here’s what to watch for to warn of imminent Bank of Japan (BOJ) yen intervention

What you want to be listening out for is more specific, and it’ll go very much like this, key phrases to be aware of:

• we do not want to see one-sided moves in FX
• we do not want to see excessive moves in FX
• FX movement is not reflecting fundamentals
• we will not tolerate speculative movement
• The Ministry of Finance will combat excessive moves

And followed up with:

• The 4 things to watch prior to Bank of Japan FX yen intervention

there are four stages of language before an actual intervention occurs.

• Stage 1: Excessive and disorderly movement in exchange rates is undesirable.
• Stage 2: We will closely monitor movements in exchange rates.
• Stage 3: We will take determined actions if necessary.
• Stage 4. We have just carried out an intervention (on the implementation)

Add in a little more now, this summary via HSBC:

“We will look out for words like

• ‘sense of urgency’,
• ‘excessive’,
• ‘one-sided’,
• ‘ready to act’,

coming from more speakers including Kanda or even Prime Minister [Fumio] Kishida.”

This article was written by Eamonn Sheridan at www.forexlive.com.