19 Jan 2015
Credit Agricole: JPY outlook stable vs USD but higher vs EUR – eFXnews
FXStreet (Barcelona) - The eFXnews Team notes Credit Agricole expects JPY to remain stable against the USD while against EUR there are chances of further upside risk, as further divergence can expected between ECB and BoJ’s monetary policy conditions in the near-term.
Key Quotes
“Both the upcoming BoJ monetary-policy announcement and global risk sentiment will be the JPY’s main drivers next week. Although the BoJ may consider lowering its inflation forecasts – and as this may be regarded as an indication of them considering an even more aggressive monetary policy stance in the future – we do not expect them to signal a major change in stance as soon as next week.”
“Accordingly, we expect the JPY to stay driven mostly by risk sentiment, which may improve on the back of a potentially larger-thanexpected QE announcement from the ECB.”
“Under such conditions we expect the JPY to remain broadly stable against the USD. Against the EUR, however, additional upside risk cannot be excluded given further room for ECB-BoJ monetary conditions to diverge in the near term.”
This content has been provided under specific arrangement with eFXnews.
Key Quotes
“Both the upcoming BoJ monetary-policy announcement and global risk sentiment will be the JPY’s main drivers next week. Although the BoJ may consider lowering its inflation forecasts – and as this may be regarded as an indication of them considering an even more aggressive monetary policy stance in the future – we do not expect them to signal a major change in stance as soon as next week.”
“Accordingly, we expect the JPY to stay driven mostly by risk sentiment, which may improve on the back of a potentially larger-thanexpected QE announcement from the ECB.”
“Under such conditions we expect the JPY to remain broadly stable against the USD. Against the EUR, however, additional upside risk cannot be excluded given further room for ECB-BoJ monetary conditions to diverge in the near term.”
This content has been provided under specific arrangement with eFXnews.