4 Sep 2013
Flash: JPY gradual weakness expected - Nomura
FXstreet.com (London) - Yujiro Goto explains that while near-term BOJ meetings are unlikely to affect the FX market, the Bank’s current stance to keep quietly purchasing JGBs and other risky assets, amid clear signs of an economic recovery and inflation, should sustain gradual JPY weakness.
Key Quotes:
“A quiet BOJ at this point re-emphasizes that the Bank is different from the past 15 years”.
“The BOJ may have already started mulling over the timing of tightening, unless there is a leadership change in April, even though aggressive monetary easing is still at a very early stage this time”.
“The difference is significant. The gradual rise in inflation expectations, with low nominal yields anchored by increasing confidence in the BOJ, should sustain JPY weakness further”.
Key Quotes:
“A quiet BOJ at this point re-emphasizes that the Bank is different from the past 15 years”.
“The BOJ may have already started mulling over the timing of tightening, unless there is a leadership change in April, even though aggressive monetary easing is still at a very early stage this time”.
“The difference is significant. The gradual rise in inflation expectations, with low nominal yields anchored by increasing confidence in the BOJ, should sustain JPY weakness further”.