Derek Halpenny, Head of Research Global Markets EMEA &amp; International Securities sits down to speak with James Roulston in FX Institutional Sales to discuss the latest FX/Rates themes. Derek discusses the implications of Japan Finance Minister Katayama ‘s comment on encouraging households and pension funds, including GPIF to invest in domestic markets. This marks a potentially significant shift in policy direction. The re-escalation of the Middle East conflict and next week’s CPI and semi-annual testimony of Fed Chair Kevin Warsh are discussed as well.

Policy Shifts and Market Risks: Japan, Inflation, and the Fed

The MUFG Global Markets Podcast

Welcome to the MUFG Global Markets FX Week Ahead Podcast with Derek Halpenny, Head of Research Global Markets, EMEA and International Securities. It's Friday 10th July 2026 and joining Derek to pose some questions on the financial market themes for the week ahead is James Roulston, FX Institutional Sales.

This material is only intended for professional investors in jurisdictions in which its use is permitted under applicable laws, rules and regulations. It has been produced for information purposes only and should not be construed as investment research or advice. MUFG EMEA disclaimers and disclosures can be located on our website. Happy Friday Derek. Indeed, and the same to you James.

Thank you very much for agreeing to do this again. This is quite a few bits and pieces as always to discuss. A couple of things that have just happened and then if we can look forward to next week as well, it'd be great. First up, all our clients are talking about Katayama's comments and how it sort of shapes the yen space but the pension fund space and it sort of has a lot of repercussions going forward.

What was your take on the comments and how do we sort of interpret it? Yeah, pretty like I would definitely class the comment as very significant from a policy perspective. We did get an initial reaction. Some of it has faded in FX. The yen has weakened back a little bit, but I think it's still the top performing G10 currency today. JGB yields fell. Equities did well.

Equities did well. So there was definitely a significance to it. And James, the significance is not necessarily what happens over the short term, because I don't think it necessarily will have much impact.

Policy Shifts and Market Risks: Japan, Inflation, and the Fed

Read the full transcript

The candid version is on a podcast,
not the earnings call.

Policy Shifts and Market Risks: Japan, Inflation, and the Fed

Read the full transcript

The candid version is on a podcast, not the earnings call.

The candid version is on a podcast,
not the earnings call.