9 May 2014
Yen weakness will be slightly delayed, but it is coming - Commerzbank
FXStreet (Córdoba) - Esther Reichelt, analyst at Commerzbank notes that absence of further BoJ measures suggests USD/JPY will remain at current levels longer than previously expected, although in the medium term many factors point towards a notably weaker yen.
Key Quotes
“At present the Bank of Japan sees no need for further action. As a result USD/JPY will remain at current levels longer than we had previously expected”.
“However, medium term many factors still point towards a notably weaker yen, as the BoJ will step up its measures in the autumn if it looks as if the inflation target will be missed”.
“Moreover market attention might begin focussing again on another issue on Monday: the stubborn current account deficit. This too will put medium term pressure on the yen”.
Key Quotes
“At present the Bank of Japan sees no need for further action. As a result USD/JPY will remain at current levels longer than we had previously expected”.
“However, medium term many factors still point towards a notably weaker yen, as the BoJ will step up its measures in the autumn if it looks as if the inflation target will be missed”.
“Moreover market attention might begin focussing again on another issue on Monday: the stubborn current account deficit. This too will put medium term pressure on the yen”.