30 Apr 2015
BoJ could ease further, EUR/JPY points upwards – Rabobank
FXStreet (Edinburgh) - In the opinion of Senior Currency Strategist at Rabobank Jane Foley, the Japanese central bank could end up easing further, intensifying the JPY downside.
Key Quotes
“The downtrend in EUR/JPY has also shown sides of stalling in recent weeks”.
“There are a few encouraging signals in Japan, better factory orders data suggest that investment spending may be turning while government pressure on large companies to boost nominal wages also appear to have had an impact”.
“That said, Japan has crawled away from last year’s consumption tax induced recession at a disappointingly slow pace and we expect the BoJ to announce further stimulus this year”.
“By contrast, signs of reflation in the eurozone are more tangible than the market expected at the start of this year”.
“On balance we expect more downside pressure on the yen in the coming months and see scope for a modest upside bias in EUR/JPY to emerge”.
Key Quotes
“The downtrend in EUR/JPY has also shown sides of stalling in recent weeks”.
“There are a few encouraging signals in Japan, better factory orders data suggest that investment spending may be turning while government pressure on large companies to boost nominal wages also appear to have had an impact”.
“That said, Japan has crawled away from last year’s consumption tax induced recession at a disappointingly slow pace and we expect the BoJ to announce further stimulus this year”.
“By contrast, signs of reflation in the eurozone are more tangible than the market expected at the start of this year”.
“On balance we expect more downside pressure on the yen in the coming months and see scope for a modest upside bias in EUR/JPY to emerge”.