Back
22 May 2014
Next few BOJ meetings unlikely to cause JPY weakness - Nomura
FXStreet (Bali) - The next few BoJ meetings are unlikely to result in Yen weakness, given the upbeat stance by Governor Kuroda, notes Yujiro Goto, FX Strategist at Nomura.
Key Quotes
"As BOJ governor Kuroda remains optimistic on the economic outlook, the next few BOJ meetings are unlikely to be a catalyst for JPY weakness. At the same time, the further decline in expectations for a BOJ easing following the press conference will likely limit the downside risk of USDJPY after the BOJ meetings."
"Even though USDJPY has been trading poorly, mostly owing to lower US yields, diminishing expectations for a BOJ easing suggest lower downside risk going forward, while the growth strategy update by the Abe cabinet in June, which will include the GPIF reform and corporate tax cut, is more likely to be positive for USDJPY."
Key Quotes
"As BOJ governor Kuroda remains optimistic on the economic outlook, the next few BOJ meetings are unlikely to be a catalyst for JPY weakness. At the same time, the further decline in expectations for a BOJ easing following the press conference will likely limit the downside risk of USDJPY after the BOJ meetings."
"Even though USDJPY has been trading poorly, mostly owing to lower US yields, diminishing expectations for a BOJ easing suggest lower downside risk going forward, while the growth strategy update by the Abe cabinet in June, which will include the GPIF reform and corporate tax cut, is more likely to be positive for USDJPY."