After having dropped all day following the latest set of poor US data making a September rate hike virtually impossible, moments ago the USDJPY snapped lower by nearly 80 pips, tumbling as much as 101.25, as stops were hit, reaching the pari’s lowest level since August 26.
Among the reasons cited for the steep drop on trading desks, is that according to an article in Japan’s Sankeipublished just over an hour ago, the BOJ is struggling to form a unified opinion on policy review. The Sankei explains, without saying who provided the information, that policy board members are struggling to reach a consensus position on comprehensive policy review to be released at Sept. 20-21 meeting.
It goes on to say that members are divided between those who support negative interest rates, prioritizing government bond purchase, and others who oppose additional easing measures:
This post was published at Zero Hedge on Sep 6, 2016.