15 Jun 2015
Kuroda’s view on FX in focus this week – Nomura
FXStreet (Barcelona) - Yujiro Goto, FX Strategist at Nomura, notes that after the large swing in USD/JPY and comments from the Japanese government denying the significance of Kuroda’s remark, Kuroda’s view on the FX market will be a key focus this week.
Key Quotes
“As market expectations for a June/July easing have already been scaled back significantly, the meeting is supposed to be a non-event for the FX market. However, Governor Kuroda’s press conference will be important after his recent comments on JPY valuation.”
“During his parliamentary appearance on Wednesday, Governor Kuroda said the JPY REER is now very weak and it is hard to expect the JPY REER to weaken from here, which sent USD/JPY lower.”
“After the depreciation of USD/JPY, Economy Minister Amari said that Governor Kuroda explained that his comments were distorted and he did not intend to move the market. In addition, the Wall Street Journal reported a government source saying Governor Kuroda’s remarks did not represent the FX view of the Abe administration and that his comments were ill-planned, suggesting the government may be frustrated by a sudden USD/JPY depreciation on Governor Kuroda’s comments.”
Key Quotes
“As market expectations for a June/July easing have already been scaled back significantly, the meeting is supposed to be a non-event for the FX market. However, Governor Kuroda’s press conference will be important after his recent comments on JPY valuation.”
“During his parliamentary appearance on Wednesday, Governor Kuroda said the JPY REER is now very weak and it is hard to expect the JPY REER to weaken from here, which sent USD/JPY lower.”
“After the depreciation of USD/JPY, Economy Minister Amari said that Governor Kuroda explained that his comments were distorted and he did not intend to move the market. In addition, the Wall Street Journal reported a government source saying Governor Kuroda’s remarks did not represent the FX view of the Abe administration and that his comments were ill-planned, suggesting the government may be frustrated by a sudden USD/JPY depreciation on Governor Kuroda’s comments.”