The Dollar Index is kneejerking higher in the last few minutes following headlines from Nikkei that The Bank of Japan is considering nominating uber-dove Masazumi Wakatabe to a key leadership position.
JPY immediately jerked lower as Wakatabe is seen as advocating bolder monetary easing. As Nikkei reports,
The potential choice of Wakatabe, a longtime proponent of aggressive easing, as deputy governor comes amid speculation that the central bank is looking to start normalizing policy.
Wakatabe has argued for raising the BOJ’s annual pace of Japanese government bond purchases from the current 80 trillion yen ($750 billion) to 90 trillion yen and broadening the range of assets the bank buys.
“There needs to be easing strong enough to absorb the negative impact of the consumption tax hike [planned for October 2019] and lift inflation to 2%,” he told The Nikkei in December.
via Zero Hedge http://ift.tt/2obqsbU Tyler Durden