If there is crisis, government will take appropriate fiscal measures

Early Monday morning in Europe, Japanese Prime Minister Fumio Kishida crossed wires, via Reuters, while assuring the markets of the government’s readiness to act if there is a crisis.

“I will secure a budget to help the economy recover during emergency,” adds Japanese PM Kishida.

FX implications

Earlier in the day, Japan’s one-year inflation expectations jumped to the highest levels since September 2015.

It’s worth noting that Japan’s big manufacturers and non-manufacturers seem to have a cautious outlook for Q4 2021, as depicted from the latest Tankan data.

Even so, USD/JPY prints 0.10% intraday gains, around 113.50 by the press time while tracking firmer yields and stock futures as the key week begins.

Read: When the Facts Change: US Inflation becomes the dominant economic topic

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