A 'Yen' For Your Thoughts

This Wednesday's FX news winner has been the Japanese yen. The currency has managed to go ‘down' in style this morning. It fell to a fresh 32-month low against the dollar and nearly a three-year low against the EUR, following the BoJ Governor Shirakawa's decision to leave his post a tad earlier than presumed. However, it was probably the implication that he was pushed by the government, drove the yen to establish such an early high.

Governor Shirakawa has indicated that he will step down on March 19, three-weeks earlier than was scheduled. Abe's government is expected to choose a governor with a dovish tint. This would allow the individual to be more ‘amenable to the governments plans for aggressive monetary easing to stimulate the Japanese economy.' Prime Minister Shinzo Abe is expected to present his candidate for the governorship to the opposition parties after a visit to the US this month.

Japanese Vice-Finance Minister Yamaguchi has so far...