# Anomaly in US interest rates and USD/JPY disappearing - Nomura — Octa

> Nomura analysts said the negative correlation between the US-Japan interest rate spread and USD/JPY began to break down in April. They listed factors behind the anomaly, including US fiscal and trade policy and expectations for early BOJ normalization. They also flagged risks that could end the anomaly, such as slowing global growth and rising US rates.

- Date: 2018-05-22 · published 2018-05-22T12:00:00.000Z
- Category: macro · region Japan · magnitude low
- Page: https://feedsoft.ai/events/65274-anomaly-in-us-interest-rates-and-usd-jpy-disappearing-nomura-octa
- Commodities: [Japanese Yen (JPY per USD)](https://feedsoft.ai/c/USDJPY.md)

## Why it matters

A breakdown in the rate-differential relationship changes how USD/JPY responds to US yields, which matters for currency hedging by importers. Direct commodity price effects are limited.

## Read by commodity

- USDJPY: neutral

## Sources

- octaafrica.net: https://www.octaafrica.net/markets/news/view/571046/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.