Since promises are as good as gold (or better apparently) for the world's central bankers, the BoJ's new man Kuroda dropped those three little words that worked so wonderfully for Draghi back in July. At 1943ET, Kuroda told the world he would do "whatever it takes" to rid his nation of the ravages of deflation. However, unlike the 200 pip rally in EURUSD that Mr. Draghi's soothing words created (and a risk on rally that last for months); it appears the world's investors are a little tired of that ol' chestnut. Since Kuroda opened his mouth and kept promising moar and moar (open-ended buying of longer-dated bonds), the Nikkei has dropped over 100 points and USDJPY has strengthened 60 pips and rising. The question now becomes, what happens if 'whatever it takes' is not enough? Meanwhile the JPY strength is wreaking mild havoc with US equity futures which have dropped 6 points from Friday's close.
When Draghi spoke the magic words...
[3]
When Kuroda tried it...
[4]
[5]
Gold and Silver are giving back earlier gains...
[6]
and US equity futures are sliding (now below Friday's closing VWAP)...
[7]
Perhaps this is what Kuroda needs to do... "I would do anything for [inflation]"
... but I won't do that...
Charts: Bloomberg