26 Sep 2013
Flash: USD/JPY speculation for increased outflows – BBH
FXstreet.com (London) - Research teams at BBH noted the yen traded with a weaker tone on the back of speculation of increased outflows from Japan to buy foreign assets, but failed to sustain a break above the 99 level against the dollar.
Key Quotes:
“Japanese money management firms released 22 funds today, which intensified speculation that they would buy non-Japanese assets”.
“Moreover, some advisors in the Government Pension Investment Fund (GPIF) are expected to release a medium-term plan to recommend the purchase of more risky asset including non Japanese assets, which also intensified speculation on yen selling”.
“Lastly, Japanese media reports suggest that the government will consider including corporate tax cuts in the economic stimulus plan, which is said to be released on October 1. The latter helped the Nikkei erase earlier losses and close over 1% higher”.
Key Quotes:
“Japanese money management firms released 22 funds today, which intensified speculation that they would buy non-Japanese assets”.
“Moreover, some advisors in the Government Pension Investment Fund (GPIF) are expected to release a medium-term plan to recommend the purchase of more risky asset including non Japanese assets, which also intensified speculation on yen selling”.
“Lastly, Japanese media reports suggest that the government will consider including corporate tax cuts in the economic stimulus plan, which is said to be released on October 1. The latter helped the Nikkei erase earlier losses and close over 1% higher”.