Nikkei 225 has increased more than 5% in September, continuing gains seen during the last week of August and nearing 30,000
Spot JPY has stayed close the 110.0 and failing breaks above the figure. Historically, dollar-yen and Nikkei are highly correlated. Now, you could easily fade the idea of dollar-yen gains as the equity index tends to react to FX swings given the share of exporters composing the Nikkei
We would say the ECB is not about to throw a tapering sign tomorrow but if the market were to interpret Lagarde this way, yields rise, the cross could extend gains above the 110.0
It's worth reminding that a new PM in Japan is unlikely to move a needle in the BoJ's ultra-easy monetary policy stance, however, we'd argue fiscal measures, proposals will be monitored (don't ignore these guys)



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