15 Jun 2015
BoJ expected to maintain policy steady, USD/JPY downside risk limited – Nomura
FXStreet (Barcelona) - Yujiro Goto, FX Strategist at Nomura, expects the Bank of Japan to hold its policy unchanged in this week’s meeting, thus no easing pressure will keep the downside for USD/JPY as limited.
Key Quotes
“We expect the BOJ to leave policy unchanged at the 18-19 June meeting. Market expectations for easing are likely to be low and we do not expect the decision to have much of an impact on JPY.”
“In the latest JCER survey no researchers expect the BOJ to ease. Expectations for a July easing have also declined, to 11% from 36% two months ago, suggesting fewer market expectations for BOJ easing over the next few months. Since the survey period, Q1 GDP was upgraded more strongly than expected and market expectations for a near-term easing have fallen further, limiting downside risk of USD/JPY.”
Key Quotes
“We expect the BOJ to leave policy unchanged at the 18-19 June meeting. Market expectations for easing are likely to be low and we do not expect the decision to have much of an impact on JPY.”
“In the latest JCER survey no researchers expect the BOJ to ease. Expectations for a July easing have also declined, to 11% from 36% two months ago, suggesting fewer market expectations for BOJ easing over the next few months. Since the survey period, Q1 GDP was upgraded more strongly than expected and market expectations for a near-term easing have fallen further, limiting downside risk of USD/JPY.”