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3 Apr 2015
Credit Agricole: JPY sees upside risk into next week’s BoJ policy announcement – eFXnews
FXStreet (Barcelona) - The eFXnews Team shares Credit Agricole’s view that JPY might see upside risk into BoJ’s policy announcement scheduled next week, and further suggest remaining short CHF/JPY.
Key Quotes
“When it comes to the BoJ investors’ focus turns to next week’s monetary policy announcement. Although growth and price developments weakened of late there appears to be little scope of the central bank considering a more aggressive policy stance.”
“This is especially true as central bank Governor Kuroda continuously stressed during the last few weeks that inflation is likely to slow further before accelerating in the second half of the year. If anything that suggests that they will continue to monitor incoming data before deciding on additional measures.”
“Under such conditions we expect the JPY to still be driven by global risk sentiment. Well supported Fed rate expectations, intact uncertainty as related to Greece and unstable Asian growth conditions should be factors keeping investor demand for risk assets limited.”
“As such the currency may be subject to upside risk still, at least against currencies such as the EUR and CHF. As a result of the above outlined conditions we remain short CHF/JPY.”
This content has been provided under specific arrangement with eFXnews.
Key Quotes
“When it comes to the BoJ investors’ focus turns to next week’s monetary policy announcement. Although growth and price developments weakened of late there appears to be little scope of the central bank considering a more aggressive policy stance.”
“This is especially true as central bank Governor Kuroda continuously stressed during the last few weeks that inflation is likely to slow further before accelerating in the second half of the year. If anything that suggests that they will continue to monitor incoming data before deciding on additional measures.”
“Under such conditions we expect the JPY to still be driven by global risk sentiment. Well supported Fed rate expectations, intact uncertainty as related to Greece and unstable Asian growth conditions should be factors keeping investor demand for risk assets limited.”
“As such the currency may be subject to upside risk still, at least against currencies such as the EUR and CHF. As a result of the above outlined conditions we remain short CHF/JPY.”
This content has been provided under specific arrangement with eFXnews.