2 Sep 2013
Flash: Yen safe haven gains reversed - BTMU
FXstreet.com (London) - Lee Hardman, Currency Analyst at the Bank of Tokyo-Mitsubishi UFJ said the improvement in global investor risk sentiment is leading to the reversal of the yen’s recent safe haven driven gains.
Key Quotes:
"The improvement in global investor risk sentiment is leading to the reversal of the yen’s recent safe haven driven gains".
"The release overnight in Japan of the stronger than expected capital spending report for Q2 has at the margin helped to reinforce investor confidence in Abeomics policies. The report revealed that capital spending excluding software expanded by a robust 2.9% in seasonally adjusted terms in Q2 which should result in real GDP growth in Q2 being upwardly revised to just above 3.0%".
"More favourable capital spending also supports the case to implement the sales tax as planned. A majority of experts in seven consultative panels favoured proceeding with the sales tax increase as planned while urging stimulus to help offset the hit to consumption".
"Prime Minister Abe reiterated that will he will take on board the opinions of expert panels when making the final decision on the sales tax, which the Nikkei reported may occur on the 4th October".
Key Quotes:
"The improvement in global investor risk sentiment is leading to the reversal of the yen’s recent safe haven driven gains".
"The release overnight in Japan of the stronger than expected capital spending report for Q2 has at the margin helped to reinforce investor confidence in Abeomics policies. The report revealed that capital spending excluding software expanded by a robust 2.9% in seasonally adjusted terms in Q2 which should result in real GDP growth in Q2 being upwardly revised to just above 3.0%".
"More favourable capital spending also supports the case to implement the sales tax as planned. A majority of experts in seven consultative panels favoured proceeding with the sales tax increase as planned while urging stimulus to help offset the hit to consumption".
"Prime Minister Abe reiterated that will he will take on board the opinions of expert panels when making the final decision on the sales tax, which the Nikkei reported may occur on the 4th October".