27 Aug 2015
BoJ Kuroda comments eyed - Nomura
FXStreet (Bali) - Yujiro Goto, FX Strategist at Nomura, notes that comments by BoJ Kuroda will be important to watch this week, with the Governor speaking in NY at present time, while also due to attend the Jackson Hole meeting later this week.
Key Quotes
The BOJ confirmed that Governor Kuroda is going to attend the Jackson Hole meeting later this week. Market-based inflation expectations have been declining as oil prices fall, while recent market developments could weaken survey-based inflation expectations, especially expectations among bond investors.
Q2 GDP growth released on 17 August was weaker, even though the BOJ has been optimistic on the recovery in Q3. Prime Minister Abe’s economic advisor Hamada today said the Japanese government and BOJ should provide a stimulus if the economy fails to grow again in Q3 (Bloomberg).
Even though we do not think Mr Hamada’s comments will have a strong impact on the BOJ’s policy stance, a second consecutive quarter of negative growth could increase market expectations for a BOJ easing again.
Household consumption expenditure this Friday and industrial production data next Monday are worth monitoring, and our economists see downside risk for July household consumption expenditure.
Governor Kuroda’s stance on disappointing economic growth in Q2, the recent market turmoil, and the possible impact of lower oil prices on inflation expectations will be important for USD/JPY this week.
Key Quotes
The BOJ confirmed that Governor Kuroda is going to attend the Jackson Hole meeting later this week. Market-based inflation expectations have been declining as oil prices fall, while recent market developments could weaken survey-based inflation expectations, especially expectations among bond investors.
Q2 GDP growth released on 17 August was weaker, even though the BOJ has been optimistic on the recovery in Q3. Prime Minister Abe’s economic advisor Hamada today said the Japanese government and BOJ should provide a stimulus if the economy fails to grow again in Q3 (Bloomberg).
Even though we do not think Mr Hamada’s comments will have a strong impact on the BOJ’s policy stance, a second consecutive quarter of negative growth could increase market expectations for a BOJ easing again.
Household consumption expenditure this Friday and industrial production data next Monday are worth monitoring, and our economists see downside risk for July household consumption expenditure.
Governor Kuroda’s stance on disappointing economic growth in Q2, the recent market turmoil, and the possible impact of lower oil prices on inflation expectations will be important for USD/JPY this week.