27 Sep 2013
Flash: Japan inflation and the yen - Societe Generale
FXstreet.com (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale notes that the jump in Japan’s headline CPI inflation to 0.9% in August is a victory of sorts for Abenomics, but concern about rising import prices debt levels and real wages, are creeping into the press.
Key Quotes
“Abenomics is more likely to weaken the yen than to build a sustainable economic recovery and the surprise is that these doubts about the latter have supported the currency.”
“Chart patterns on USD/JPY look unhelpful to me in the very short term. I hope they are preparing to trap yen bulls (contrarians). I’ll stick with long GBP/JPY, which has had a good run, unless it breaks down to 154.”
Key Quotes
“Abenomics is more likely to weaken the yen than to build a sustainable economic recovery and the surprise is that these doubts about the latter have supported the currency.”
“Chart patterns on USD/JPY look unhelpful to me in the very short term. I hope they are preparing to trap yen bulls (contrarians). I’ll stick with long GBP/JPY, which has had a good run, unless it breaks down to 154.”