At a Group of 30 seminar, Kuroda said the global economic recovery was becoming more broad-based
but :“So far, heightening geopolitical risks have not led to a serious risk aversion in the market. Asset valuations remain elevated with volatility being at historically low levels,
“Stability in financial markets is good news. But there is a possibility that market players are complacent and not properly pricing risks, which requires attention,” he added.
Finally about Japan:“Achieving our 2 percent inflation target is still a long way off. The BOJ will persistently pursue aggressive monetary easing, with a view of achieving its target at the earliest possible time,”
Markets have a tendency to react to risk aversion little faster than the opposite , especially lately. I wouldn’t be surprise to see JPY a tad higher , especially with the NK threat renewed.
My idea has been clear all the time.Risk aversion and stronger JPY by correlation ok , but IF , and I sincerely hope not, Nk drops a bomb on Japan, I can’t see how that wouldn’t affect capital flight
to a certain extend. The currency will be the last of my worriers if my second home country get’s in danger, but unfortunately the hard reality is,we’re in this market and have to manage our risks and accounts….