1 Oct 2014
USD/JPY could be capped by 112.00 in the near-term - UBS
FXStreet (Córdoba) - According to the UBS analyst team, the overall positive business sentiment in Japan could limit the incentive for BOJ to consider additional easing and therefore cap the USD/JPY at around 112 levels in the near term.
Key Quotes
“Japan's Q3 Tankan business sentiment eased slightly from the previous quarter, but nonetheless remain close to multi-year highs. The outlook for large manufacturers and non-manufacturers eased to 13 and 14 respectively (from 15 and 19 previously). Capex intentions rose by 8.6%, improving from 7.4% in the previous quarter”.
“The overall positive business sentiment could limit the incentive for BOJ to consider additional easing, and cap the USD/JPY at around 112 levels in the near term”.
Key Quotes
“Japan's Q3 Tankan business sentiment eased slightly from the previous quarter, but nonetheless remain close to multi-year highs. The outlook for large manufacturers and non-manufacturers eased to 13 and 14 respectively (from 15 and 19 previously). Capex intentions rose by 8.6%, improving from 7.4% in the previous quarter”.
“The overall positive business sentiment could limit the incentive for BOJ to consider additional easing, and cap the USD/JPY at around 112 levels in the near term”.